Moldova and EIB Signed Two Credit Agreements for Leis 150 mn
OREANDA-NEWS. November 25, 2010. The money is intended to finance the road restoration and modernization program and two programs of the wine sector restructuring. The documents were signed in Chisinau by Prime Minister of Moldova Vladimir Filat and Director for Eastern Europe of the EIB Constantin Sinadino. Prime NInister said both credits in the amount of 75 million euros each were allocated to Moldova on profitable conditions.
Particularly, the credit for financing the road restoration and modernization program is provided to the republic for 18 years with the five-year grace period, and the credit for restructuring the country’s winemaking sector – for 12 years with the four-year grace period. The interest rate with both loans won’t exceed 3%, amounting to 0.68% p.a.+Libor. The money is planned to be used to reconstruct and modernize 93.5 kilometers of Chisinau-Starateni-Balti, Chisinau-Calarasi-Ungheni-Sculeni, Comrat-Ciumai roads. The credit is planned to be allocated to Moldova by three tranches, 25 million euros each.
The total cost of the road infrastructure restoration project is valued at 183 million euros. The European Bank for Reconstruction and Development, the World Bank and the European Commission will participate in the funding together with the European Investment Bank, the European Commission allocating a 30 million euro grant.
The project will be implemented till 2014. Speaking of the loan for the wine sector restructuring program, Vladimir Filat said the 75 million euro loan would be used to develop the quality infrastructure, to re-equip laboratories, to modernize wineries, to purchase new equipment for them, to make new plantations, to replenish circulating assets.
Financing will be received by the companies with their activities being not the real production of wine but directly connected with this process influencing the final wine product’s competitiveness. These are the companies engaged in investigations, quality, security and wine authenticity assurance, related production.
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