The Government of Japan will offer the Republic of Moldova a US$100 million preferential loan through the Japan International Cooperation Agency. A draft decision on the initiation of negotiations was approved by the Cabinet on Wednesday, IPN reports.
“Under the loan agreement, the Government of the Republic of Moldova is to take out a loan to the value of about 13.5 billion Japanese yen, which is approximately US$100 million. The objective of the financing is to support the reforms and policies of the Government of the Republic of Moldova by alleviating the impact of the Ukraine war on the refugees and by ensuring the Republic of Moldova’s resilience and enhanced competiveness,” said Minister of Finance Veronica Sirețeanu.
The loan will be repayable in 30 years with a grace period of 10 years.
The request for financial support to cover the state budget deficient was made by the Ministry of Finance on July 26, 2022. As a result, the Government of Japan expressed its readiness to finance the Government of the Republic of Moldova for this to implement economic recovery policies.
