The Government will undertake to cover the interest rates on loans equal to six salary funds, instead of three as it was agreed earlier, while the period for making such payments is extended until December 31, 2021 and will include the loans taken out not only from commercial banks, but also from microfinance companies, IPN reports.

“We earlier proposed, the Government accepted and Parliament voted in favor of three salary funds for covering the interest rates until the end of this year. Now we propose covering the interest for all the enterprises that take out new loans, in the amount of six salary funds. This does not mean that these pays will be used for salaries only. They can be spent on working assets, investments. Each enterprise will decide,” President Igor Dodon said after the meeting with the Premier and Parliament Speaker.

The official explained that the salary fund in Moldova at present is of about 4 billion lei and six salary funds for the entire economy means about 24 billion lei. Currently, the business entities have loans totaling about 28 billion lei in the real sector of the economy. “By such a measure, we practically cover the interest on all the bank loans raised by business entities,” said President Dodon.

He specified that the covered interest rate on loans in lei is 8.7%, while in foreign currency is over 4%.