The French Development Agency will provide €60 million to Moldova for developing the energy and railway sectors. The Republic of Moldova and the Agency will sign a credit facility agreement, IPN reports.

Under a draft decision to this effect that was approved by the Government on Wednesday, the money will be used to support the budget and to do reforms in the energy and railway sectors. On behalf of Moldova, the agreement will be signed by Minister of Finance Dumitru Budianschi.

The loan will be repayable in 15 years, with a grace period of five years, and will be disbursed in one tranche. The interest rate is floating - Euribor 6m + a margin of 0.90%.

The agreement is to be ratified by Moldova’s Parliament and will take effect the day the French Development Agency receives the legal opinion of the Moldovan side.