Moldovan parliament adopts two drafts on attracting IMF loan
foto: moldpres.md
Parliament adopted at the meeting today two draft laws on attracting of $178,7 million loan, recently approved by the International Monetary Fund’s (IMF) Board, Moldpres reports.
The agreement is funded through two lending instruments – Extended Fund Facility (EFF) and Extended Credit Facility (ECF), which aim to support economic reform program and financial resources of Moldova. Consequently, Moldova obtained access to a total amount of 129,4 million Special Drawing Rights (SDR) (about $178,7 million or 75 per cent of Moldova’s quota in IMF).
Through Extended Fund Facility (EFF), the amount of 31,4 million special drawing rights (SDR) will be used to finance the state budget deficit. The money is to be repaid in 12 equal installments after expiry of 4,5 years after each withdrawal made from the Loan Account. Interest applied to the loan in question will be the basic on SDR’s interest rate.
Through the Extended Credit Facility (ECF), IMF will offer Moldova an amount of 43,1 million SDR. The money is to be repaid in 10 equal installments after expiry of 5,5 years after each withdrawal made from the Loan Account. The interest applied to the loan in question will be equal to zero per cent until 2018.
At the same time, the amount of $35,9 million is available to the Moldovan authorities immediately after the agreement’s approval. The remaining amount will be disbursed during program implementation in five tranches, each of the semi – annual evaluations of the program.
Moldova has not had an agreement with IMF since autumn 2013.
The agreement is funded through two lending instruments – Extended Fund Facility (EFF) and Extended Credit Facility (ECF), which aim to support economic reform program and financial resources of Moldova. Consequently, Moldova obtained access to a total amount of 129,4 million Special Drawing Rights (SDR) (about $178,7 million or 75 per cent of Moldova’s quota in IMF).
Through Extended Fund Facility (EFF), the amount of 31,4 million special drawing rights (SDR) will be used to finance the state budget deficit. The money is to be repaid in 12 equal installments after expiry of 4,5 years after each withdrawal made from the Loan Account. Interest applied to the loan in question will be the basic on SDR’s interest rate.
Through the Extended Credit Facility (ECF), IMF will offer Moldova an amount of 43,1 million SDR. The money is to be repaid in 10 equal installments after expiry of 5,5 years after each withdrawal made from the Loan Account. The interest applied to the loan in question will be equal to zero per cent until 2018.
At the same time, the amount of $35,9 million is available to the Moldovan authorities immediately after the agreement’s approval. The remaining amount will be disbursed during program implementation in five tranches, each of the semi – annual evaluations of the program.
Moldova has not had an agreement with IMF since autumn 2013.