Parliament ratifies Framework Agreement between Moldova and European Investment Bank

Parliament of Moldova passed in two readings the draft law on the ratification of the Framework Agreement between Moldova and the European Investment Bank. The ratification of the project will allow financing capital investment projects favouring an equilibrated development of the economy of Moldova. The financing of EIB is destined to the development of medium and small-sized enterprises through credit lines, promotion of regional development, investments in infrastructure. Also it offers the possibility of co-financing the projects concluded with other financial institutions. EIB is the European Union's financing institution and was established under the Treaty of Rome (1957). The task of the EIB is to contribute towards the integration, balanced development and economic and social cohesion of the Member States. The members of the EIB are the Member States of the European Union, who have all subscribed to the Bank's capital (over EUR 163 bln). The highest share is subscribed by Germany, France, Italy and UK. EIB purchases the highest share of funds from the capital markets and due to the fact that it is one of the most important international financing organisations, the rating agencies included Bank’s loans in the maximum category (AAA) which offers it the possibility to raise on the markets substantial volumes of funds which it directs on the most favourable terms towards financing capital projects according with the objectives of the Union. At present, EIB is the most important financing source for the projects of the new EU member states, neighbour and Balkan countries. Almost half of the loans were offered for projects in transport. The projects related to the industrial, environment and telecommunication fields absorbed almost 15% each, while 10% of loans were directed to the energy sector.