Draft ratification of Agreement on Reform and Growth Facility for Moldova approved by Government

The draft on the ratification of the loan agreement between the Republic of Moldova and the European Union concerning the granting of the Reform and Growth Facility for our country was approved today by the Government.

Finance Minister Victoria Belous said that the main objective of the Agreement is to support our country's reform agenda, aimed at business development and industry stimulation, modernization of transport and digital infrastructure, modernization of education infrastructure, the healthcare system, and social services, as well as energy security and efficiency, strengthening of public authorities' capacities, and the rule of law.

The Agreement provides for the contracting of a loan amounting to 1,500,000,000 euros for 2025-2027, granted on concessional terms. The financial means will be allocated both in the form of budget support (75%) and for the financing of investment projects (25%).

The disbursement of the funds will be conditioned by the implementation of the reforms set out in the reform agenda. The maturity period of the loan is 40 years, including a grace period of up to 10 years.

According to data from the Ministry of Finance, currently, the Republic of Moldova benefits from loans contracted from the European Union with interest rates ranging from 0.1% to a maximum of 3.3% annually.

The European Commission has adopted a Growth Plan for the Republic of Moldova worth 1.9 billion euros, funded through the Reform and Growth Facility for 2025-2027. This Plan represents the most extensive EU financial support package granted to the Republic of Moldova since gaining independence and aims to stimulate our country's economy, accelerate the EU accession process by implementing key reforms, and providing significant financial support.