The MPs ratified the agreement of the Government of the Republic of Moldova with the International Monetary Fund concerning the provision of an emergency loan of about US$234 million. The ratification bill was adopted in two readings by all the attending MPs, except for the members of the Shor Party’s group, IPN reports.

Under the agreement, a zero interest rate will be paid on US$78 million that is to be repaid during ten years. The interest rate on the other US$156 million is 1.5% a year and the loan is repayable in five years.

“The loan from the International Monetary Fund will cover half of the 8.8 billion lei deficit rise, which is 4.4 billion lei. This will enable to cover the main costs included in the national public budget for this year, given the considerable decline in revenues,” Prime Minister Ion Chicu stated in Parliament.

Answering MPs’ questions, the official said the successful completion of the four-year program with the IMF enables to negotiate a new program and a relevant request was already made. However, a period of about half a year is needed to obtain a new program given the necessity of assessing the needs. If the current epidemiological situation had been different, the IMF mission would have been in Moldova already.

In his speech, head of the PAS group Igor Grosu said a precedent was set by ratifying the Russian loan. Now the MPs vote another loan, including the Socialist MPs who blamed the IMF for all the bad things that happened in Moldova. The difference between the two agreements is the absence of point 7.2 from the agreement with the IMF. “This does not contain provisions by which the current and future thieves will rob our children,” he stated.

Marina Tauber, of the Shor Party, said their group, as in the case of the Russian loan, will abstain from voting for the reason that they consider Moldova is too dependent on foreign loans. “We think we should start to develop our economy from today and should not hurry to accumulate new debts,” noted the MP.