Over four months after Russia claimed that it will offer a $500 million loan to Moldova, President Igor Dodon announced that Moldova’s Ambassador to Russia has signed the loan agreement.

In November 2019, Prime Minister Ion Chicu was claiming that Russia will offer to Moldova a $500 million loan to support infrastructure projects in the country. However, as time passed the loan shrunk from $500 million to $300 million. Recently, Dodon announced that Moldova’s Ambassador to Russia, Andrei Neguță signed the loan agreement with the Russian Minister of Finance. 

“It is the first concrete financial support offered from outside our country during this crisis period, and the money will be transferred to the state budget of Moldova for the country’s needs, including the financing of infrastructure projects,” announced Dodon.

According to the signed act, the first tranche of €100 million should reach Moldova within 30 days from the entry into force of the agreement between the two countries. The second tranche, in the amount of €100 million, would be transmitted to Moldova no later than October 31, 2020.

“The Moldovan side, in the interest of extending the economic-trade relations between the two countries, will endeavor to ensure the implementation of joint projects on the territory of Moldova by Russian companies. For this purpose, Russian companies will have access to participate in competitive procedures for the procurement of goods and services, established in Moldova, under conditions no less favorable than those offered to companies in Moldova and other companies ”- is specified in the Credit Agreement.

Also, according to the Agreement, Moldova would return this loan within 10 years, based on 20 equal half-yearly payments. Payments will be refunded on March 15 and September 15 of each year. The first repayment payment will have to be made on March 15, 2021. At the same time, the loan is granted based on an annual interest rate of two percent.

If the payments and interest will not be paid within 10 calendar days from the date of payment, this debt will be declared outstanding and interest will be calculated in the amount of 150 percent of the interest rate on the loan, starting with the respective payment date and until the debt is paid off.

The agreement is to be ratified by the Governments and Parliaments of both parties.

Previously, the political analyst Ion Tăbârță, stated for Ziarul de Gardă that this credit obtained by Moldova appeared in non-transparent conditions:

“This credit appeared in totally non-transparent conditions, with obvious political substrate. Rather, this credit is inspired by propaganda campaigns that, aiming to show that we can find money in Russia too, not only in the European Union. ”