The draft decision on the endorsement of the signing of the framework agreement between the Republic of Moldova and Council of Europe Development Bank (CEB) on the lending of at most €70 million to Moldova for covering the costs associated with the fight against COVID-19 was approved in the July 20 meeting of the Government, IPN reports.

Deputy Prime Minister Sergey Pușcuța, minister of finance, said it is estimated that the loan will cover the costs related to the fight against COVID-19 in the budgetary period of 2020-2022. “Consequently, the disbursement time limit was set at June 30, 2022. The maximum repayment period of the loan for the Health component is 15 years, with a grace period of four years, and six years for the Support for Micro, Small and Medium-Sized Enterprisers component, including a grace period of one year,” stated the official.

“The framework lending agreement allows applying a fixed interest rate and a floating rate that will be decided on each requested disbursement, depending on the proposed financial conditions.”

The Government of the Republic of Moldova asked the CEB to offer a loan for ensuring an efficient and prompt response to Moldova’s needs in the fight against the novel coronavirus. The draft decision and size of the loan were approved by the CEB Governing Board on May 12, 2020.