Moldova will ask U.S. to extend reimbursement term of PL-480 loan

The Government will propose extending the reimbursement term of the loan PL-480 provided by the U.S. Government to animal-breeding companies in 1994-95. The Government will suggest that the given companies start repaying the credit from 2010. Therefore, the Ministry of Agriculture and Food Industry intends to promote the prorogation of the law regarding the measures aiming at rectifying the economic-financial situation of the companies from the animal-breeding sector of 2003. The law envisages the freezing of debts and payments on the PL-480 loan until December 31, 2007. The Government will propose extending the debt freezing term for another two years. At a working meeting called by Prime Minister Vasile Tarlev, Minister of Agriculture and Food Industry Anatolie Gorodenco said that the technical loan was managed inefficiently and it affected seriously the animal breeding sector of the country. Most of the companies working in the sector are on the verge of bankruptcy. The minister specified that the implementation of the law permitted to improve the situation in the area, but as a result of this year’s severe drought preceded by the ban on the export of Moldovan products to Russia, the economic entities will not be able to start repaying the loan from 2008. The Premier stressed the opportunity of extending the reimbursement term and demanded that the given modification is put forward as soon as possible. The PL-480 loan of 29 million USD was offered by the U.S. Government in 1994-1995. The interest and penalties accumulated until 2001 trebled the sum that must be repaid. The debt now totals about 73 million lei.