The MPs of the Democratic Party suggested an amendment to the draft law to ratify the lending agreement with the Russian Federation so that the eventual guaranteeing of private loans from the state budget is approved by Parliament decision. The Democrats said interpretations and risks will be excluded this way, IPN reports.
The PDM proposed that the Government of the Republic of Moldova should authorize national companies to raise loans from Russian creditors or insured loans from Russian insurers under the guarantee of the Government of the Russian Federation, only based on a decision by Moldova’s Parliament.
The Democrats said that at their request, the Ministry of Finance interpreted Article 7, point 2 of the lending agreement with Russia and informed that there are now no debts that would fall under Article 7, point 2.
“As regards the method of offering guarantees under Article 7 of the agreement, we consider it is judicious for the Parliament of the Republic of Moldova to pronounce by the law by which the agreement is to be ratified,” says the Ministry of Finance’s response.
The Ministry noted that on March 31, 2020, the foreign public debt to Russia afferent to the agreement to reschedule the debt totaling US$91.1 million signed on April 30, 2006 was US$30.2 million. There are no outstanding debts. The deadline for the repayment of this loan is September 1, 2022.
In another response, the Ministry of Justice said the eventual disputes that can derive from the contract could be mediated in international courts. “As regards the resolution of eventual disputes, we communicate that the parties to the agreement in Article 11 defined the political-diplomatic method, which is negotiations and consultations, as a formula for resolving disputes. The international mediation method could be considered an optional solution for the parties. The method applicable in the given conjuncture will be agreed with the financing party, in the name of the Republic of Moldova, by the Ministry of Finance, as an authority responsible for the negotiation of the text of the agreement,” said the Ministry of Justice.
