The agreement on the provision of a loan of €200 million by the Russian Federation has been ratified by Parliament. The bill was given two readings and was carried by the Socialist and Democratic MPs. The amendment proposed by the Action and Solidarity Party wasn’t supported, while the Democrats’ amendment was accepted. Under the accepted amendment, the eventual guaranteeing of private loans with state budget funds is to be endorsed by Parliament, IPN reports.
While in Parliament, Prime Minister Ion Chicu said the loan is to be provided in two tranches. On this loan, Moldova will pay an interest rate of 2% a year. The loan is repayable in 11 years and the grace period is of about a year. The money will be used to finance Moldova’s budget needs, covering almost half of the rise in the budget deficit. Without this and other loans, the pensions and salaries could not be paid.
“I want to assure you that this agreement does not involve financial, political or other types of risks. The Republic of Moldova undertakes only to repay this €200 million loan and pay interest. Moreover, the agreement allows to take out only one tranche and to repay the loan at any moment we want, without any penalty, tax or something else,” stated Premier Chicu, noting the accord will help remedy the current situation that is unprecedented for Moldova.
Answering MPs’ questions about the provisions related to debts, including those for natural gas, Ion Chicu said there are no risks related to these debts as the agreement refers to state loans or loans released by Russian banks with the consent of the Moldovan side. “So, it goes to money, not to gas or something else,” he stated.
Asked how the Russian loan will be used, Premier Chicu said the money will go to finance the budget needs that include capital investment. Moldova must invest in infrastructure so as to create jobs and pay salaries, not unemployment benefit. “The agreement was negotiated by the Government of the Republic of Moldova in the interests of the Republic of Moldova.”
In his speech, PAS MP Mihai Popșoi said this loan involves enormous economic risks and is more expensive than the loans of the EU or the IMF. This is an electoral loan as the second tranche is to come during the election campaign that Igor Dodon will conduct at the citizens’ expense.
Pro Moldova group leader Andrian Candu said that each article of this agreement generates questions. On the one hand, they say the money comes as budget support. On the other hand, Russian companies will be able to take part in projects implemented with the borrowed money. “We wanted to support the agreement as we realize that Moldova is in a crisis and the inaction of the Dodon Government brought us close to a catastrophe. We wanted, but cannot,” he stated.
Socialist MP Bogdan Țîrdea said that no loan or treaty was studied as thoroughly as the given loan. The only problem for the opposition MPs is the fact that this is a Russian loan. If it had had a different name, it would have been supported unanimously.
“The agreement says that this is a sovereign loan, but Russian companies with their interests appear there right below,” said the leader of the PPPDA group Alexandru Slusari. He noted the agreement does not ensure clarity and does not specify the courts where eventual disputes could be examined, but it’s clear that these will be Russian courts.
Unaffiliated MP Octavian Țîcu noted that this loan has nothing to do with the pandemic and is dictated by political interests. “It is the PSRM’s wish to take revenge, to show to the European Union and the Western partners that they can find money elsewhere,” he said.
Democratic MP Dumitru Diacov said the agreement contains some trivial defects because it was written in a hurry or because of lack of experience. Its examination, which lasted for over two hours, looks more like sabotage on behalf of those who simply invent things.
