Paris Club creditors agreed on 12 May 2006 with the Government of Moldova to a restructuring of its external debt amounting to 150 million USD. According to the Finance Minsiter, Mihail Pop, this agreement follows the International Monetary Fund’s approval of Moldova’s arrangement under the Poverty Reduction and Growth Facility on 5 May 2006. This agreement consolidates roughly US$ 150 million due on debts contracted by Moldova before 31 December 2000. This amount consists of arrears (US$ 68 million, including late interest) due as of 30 April 2006 as well as maturities falling due from 1 May 2006 up to 31 December 2008 (US$ 81.8 million). The rescheduling of the maturities and 30% of the arrears is structured on the so-called "Houston Terms", that stipulate that ODA debts are to be repaid over 20 years, with 10 years of grace, at interest rates at least as favorable as the concessional rates applying to those loans; commercial credits are to be repaid over 15 years, with 5 years of grace with progressive repayment, at the Appropriate Market Rate. 70% of the arrears will be repaid during 2006-2008. By signing this agreement it is expected to reduce debt service due to Paris Club creditors during the IMF supported program from US$ 149.9 million to US$ 60.8 million.