Foreign loans and grants directed to capital investments

The state will direct all foreign donors’ loans and grants, the next three years, into capital investments in Moldova’s economy, minister of finance Mihai Pop announced about this, referring to the draft on the Average-Term Costs Framework, following to be submitted to governmental approval. According to Pop, the authorities have taken a „principle” decision that these resources should not be directed to public assistance, but to capital investments, as there will not be included additional resources from the state budget. According to the minister, the budgetary provisions for capital investments will remain, in 2007, as in 2006, at the quota of 100 million lei. Even if there are no negotiations regarding providing certain foreign grants or loans, the minister expressed his hope that very soon they will be provided as soon as the Agreement with the International Monetary Fund is concluded. According to Pop, it will be directed as well for capital investments the credit provided by the World Bank in the next 3 years to RM for budgetary assistance, about 10 million dollars annually. Recently, the Government of Netherlands announced about its availability to provide for Moldova a grant of EUR 2,5 million. This money will be allocated, according to authorities, for investments in infrastructure, including roads. The state’s leadership promised that this money will not be used, as before, for covering state budget expenses.