The Action and Solidarity Party (PAS) noted the lending agreement with Russia that was approved by the Government today contains “dangerous” provisions that generate exaggerated risks as regards the country’s long-term indebtedness and also provisions that cannot be found in lending agreements signed by Russia with other countries.
PAS president Maia Sandu said their party’s parliamentary group will demand to invite the minister of foreign affairs and European integration to Parliament so that this explains how such an agreement that is detrimental to Moldova could be signed, IPN reports.
According to the politician, the biggest danger derives from Article 7, par. 2 that provides that if the overdue amounts or interest rates on the state loan or loans provided by Russian banks to Moldovan debtors with the consent of the Moldovan side are not paid on time, the Russian side can consolidate the whole overdue sum and ask for its urgent payment.
This provision actually means that Moldova issues a kind of guarantee to private debtors, private enterprises or companies, while the state, the citizens will later service these debts if the debtors do not repay them to the Russian banks on time. The ‘vague’ provisions of this loan can lead to the issuing of guarantees by the Moldovan authorities non-transparently and abusively as the law does not regulate such situations.
“Our questions are: Who are these debtors? Which are those Moldova companies, private debtors that already took out loans from Russian banks or can take out loans in the future and generate debts to these banks? What do the debts of private debtors have to do with the state debt? What is there hidden behind this provision? Or, is this a method by which Igor Dodon tries to open up the door for companies that work for him?” wodnered Maia Sandu.
Natalia Gavrilița, ex-minister of finance, said that if the population is not attentive to the “obscure” provisions negotiated by the Government, the citizens risk being indebted for many years to come. She called on the citizens and private companies to be aware as there is a risk that payments to service this debt and the private debt undertaken by the state will be made from the state budget during many years at a time when the taxpayers’ money could be used to support the people and local companies.
The Cabinet on April 21 endorsed the lending agreement between the Government of the Republic of Moldova and the Government of the Russian Federation concerning the provision of a state financial loan of €200 million by Russia, which will be disbursed in two tranches. Moldova will pay an interest rate of 2% a year on this loan.
