Russia provides multi million euro loan to Moldova

The Moldovan government will meet next week for a special meeting to consider changes to the 2020 budget, taking into account external sources of funding. On April 10, Moldovan Presindent Igor Dodon confirmed that Russia would provide the previously promised multimillion-dollar loan.

"The government of the Russian Federation has decided to approve a loan agreement with Moldova. Yesterday there was a meeting of the Russian Cabinet. An agreement will be signed in the coming days. And these 200 million euros will be included in the revised budget," Dodon said, as quoted by the Russian news agency Sputinik.

According to the president, the authorities intend to spend some of the money on various economic initiatives. Some of the funds will go towards repaying interest on loans taken prior to this period. The changes may affect some of the sectors affected by the coronavirus epidemic.

"We have already taken a number of measures to support the population and business. Another package will be proposed along with amendments to the law on the state budget. Most likely, next week the government, if it has time, will present changes to the budget for 2020, taking into account the current situation," Igor Dodon said.

Part of the Russian loan that Moldova will receive for the reconstruction of infrastructure facilities will go to finance the health care system. Moldovan Finance Minister Sergiu Pușcuța explained that the financial assistance provided by Moscow has no direct purpose.

"According to the draft loan agreement, which is already in the final stages of the procedure, there is no direct link between the purpose of this loan and road repairs. This loan is intended to finance the budgetary needs of the Republic of Moldova. Thus, the parliament will decide what his appointment will be," the official said.

  Moldova, Russia, Dodon

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