The government approved the draft law on attracting two loans through the International Monetary Fund’s Extended Credit Facility (ECF) and the Extended Fund Facility (EFF). The total value of the program is 400 million special drawing rights (SDR), including SDR 314.3 million intended for budget support.

Finance Minister Dumitru Budianschi noted that on December 20 the IMF Board approved the loan agreement with Moldova. The new program aims to support the economic recovery from the COVID-19 pandemic, improve the framework for preventing and combating corruption, and strengthen governance in the financial sector and the public sector.

The loan offered via the ECF, amounting to SDR 104.75 million, will be repaid in ten equal installments, after the expiry of 5½ years from each draw. The maturity is 10 years, and the interest will be set every two years and will be zero percent until 2023.

The loan offered via the EFF, amounting to SDR 209.55 million, will be repaid in 12 equal installments after the expiry of 4½ years from each draw. The maturity is 10 years, and the interest rate is floating, being 1.05% per annum as of December 20. The service fee is 0.5% of the offered amount and the commission is 0.3%.

The loans will be used for the needs of the state budget. The duration of the program is 40 months.