Parliament has approved in final reading two loans to be taken out by the Moldovan Government under the International Monetary Fund’s Extended Credit Facility (ECF) and the Extended Fund Facility (EFF).
The Government will borrow a total of 314.3 million Special Drawing Rights (about $440 million): SDR 104.75 million ($ 147 million) through the ECF, and SDR 209.55 million ($ 293 million) dollars) through the EFF.
The loans will be used to finance the needs of the state budget, with a focus on roads, energy sector, water supply, health care, education and job creation.
The loan under the ECF will be repaid in ten equal installments after the expiry of 5½ years from each withdrawal made made from the Loan Account. Maturity is ten years and the interest rate will be updated every two years, with a zero rate until 2023.
The loan under the EFF will be repaid in twelve equal installments after the expiry of 4½ years from each withdrawal made from the Loan Account. Maturity is ten years and the interest rate is floating (1.05% as of December 2021).
