Moldova secures a €218.2 million IBRD loan to finance the budget deficit
The deputies approved a loan agreement with the International Bank for Reconstruction and Development (IBRD) totaling 218.2 million euros, intended to finance the budget deficit and support necessary reforms.
The program includes 14 conditionalities for the years 2026 and 2027. The requirements for the first phase of the program, scheduled for 2026, have already been fulfilled.
These requirements include modernizing the public procurement framework and improving the business environment, enhancing financial transparency, implementing reforms in the education and labor markets, and aligning the energy sector and transport infrastructure with European Union standards.
“The loan has already been disbursed to the state budget, serving as a crucial source for financing the budget deficit in 2026,” stated Ion Gumene, State Secretary of the Ministry of Finance, on Friday, June 26.
According to the official, the initially agreed support was smaller, but due to the crisis in the Middle East and the rising rates on government securities (SMS), the authorities requested an increase in the loan amount.
“The goal was to replace the issuance of VMS, equivalent to two billion lei, which would have been more costly. Through this loan, we have actually achieved annual savings of 100 to 115 million lei,” the Secretary of State explained.
The loan, amounting to 218.2 million euros, is provided for a term of 30 years with a nine-year grace period. The interest rate is variable at 1.11%, and the contract includes a one-time commission of 0.25% based on the loan amount, as well as a commitment commission of 0.25% applied to the undisbursed balance.
