Government proposes canceling Moldova-Gaz debts to Ministry of Finance

The Government suggests canceling Moldova-Gaz’s debts to the Ministry of Finance. According to First Deputy Prime Minister Igor Dodon, the energy sector’s debts now total 2 billion lei. ”These are chain debts – Termocom owes money to the thermoelectric plants CETs, the CETs to Moldova-Gaz, while Moldova-Gaz to Russia’s natural gas supplier Gazprom,” Dodon said at Friday’s meeting of the Government. “The debts are a burden on Moldova’s energy sector and a major obstacle to attracting investment into the CETs and REDs (power distribution networks), which must be reequipped and modernized. But the investors do not hurry to come as these company’s debts keep them away,” the First Deputy Prime Minister said. The Government decided to cancel the debt of 700 million lei that Moldova-Gaz owes to the Ministry of Finance since the end of the 90s, when the joint company was founded. According to Dodon, the cancellation of the debt will contribute to improving the situation of the energy companies and to attracting investment into the sector.