The state-run company Energocom will lend over 1 billion lei to Moldovagaz for ensuring energy security and the supply of natural gas to Moldova. The sum will be disbursed on October 20, after the relevant contracts are signed. A decision to this effect was taken by the Commission for Exceptional Situations, said Deputy Prime Minister Andrei Spînu, Minister of Infrastructure and Regional Development.

According to the official, the measure will enable Moldovagaz to fully pay for the gas consumed in September and the advance for October. The loan totals 1.05 billion lei and is to be repaid by May 1, 2023, at an interest rate of 21.5% a year, which is the base rate of the National Bank of Moldova, IPN reports.

“The full pledging of the 100% shareholding owned by Moldovagaz in Moldovatransgaz in favor of Energocom, together with any other assists transferred under the economic management of this by Moldovagaz, is the real guarantee for the repayment of the loan and payment of interest in accordance with the executory pledge agreement,” wrote the Deputy Premier.

The loan agreement will be signed without the preliminary consent of companies’ boards and/or general assemblies. “We acted through the agency of the Commission for Exceptional Situations, with derogation from the law that requires the Administration Board’s decision for approving the pledge,” Prime Minister Natalia Gavrilița said on Wednesday.  She noted that if the 1.05 billion lei loan that Energocom offers to Moldovagaz is not repaid by May 1, 2023, the state will take over the natural gas transmission networks. Currently, the natural gas transmission networks of Moldova belong to Gazprom and were conceded earlier by governments of Moldova.