The Government approved the draft laws to ratify the lending agreement between the Republic of Moldova and the European Union concerning macro-financial assistance and the relevant Memorandum of Understanding. Under the document, a loan of up to €100 million will be provided in two equal tranches, IPN reports.

According to Deputy Prime Minister Sergey Pușcuța, Minister of Finance, the objective of the given macro-financial assistance is to attenuate the balance of payments and budget needs and to support the Republic of Moldova in the current financial situation.

The disbursement of the first tranche is non-conditional, while of the second tranche is conditional upon the progress made in the implementation of the Memorandum of Understanding, including of six measures related to the business climate, good governance, fight against corruption and management of public finances.

The loan is repayable in at most 15 years. The interest rate on each tranche will depend on the costs at which the European Commission will borrow the money from the international financial market.