The Republic of Moldova borrows €400M to secure energy for cold season
The Republic of Moldova is taking steps to enhance its energy security for the upcoming cold season. The Joint Stock Company "Energocom" plans to secure a loan of 400 million euros from the European Bank for Reconstruction and Development (EBRD) to ensure a stable supply of natural gas in the country. This decision was approved by the Cabinet of Ministers on June 5. The loan will have a duration of five years and will be guaranteed by the Government, which will exempt the company from a risk commission estimated at 64 million euros.
Minister of Energy Dorin Junghietu explained that the International Bank for Reconstruction and Development stipulated that state guarantees were required to secure the loan for the state-owned company Energocom.
The minister also noted that Energocom will soon take on public service obligations and currently possesses the necessary capacity and credibility to access international financing.
In contrast, Moldovagaz did not have such resources in the past and has made late payments to suppliers.
"The loan is not for the state; it is for Energocom, which will use the funds to purchase gas. There have been many public comments criticizing this loan recently, but the commissions will not be 70 million euros, as some have claimed. Instead, they will be 12 million euros. This means the rate will not be 8 euros per megawatt, but rather 1 euro. Additionally, the commissions will only be paid if the full amount is utilized," said the Minister of Energy.
According to Dorin Junghietu, Energocom has already purchased over 150 million cubic meters of gas for the upcoming cold season. The official emphasized that all purchases were made at competitive prices.
