The French Development Agency (AFD) will provide the Republic of Moldova with a €25 million loan to implement reforms in the energy sector, particularly to support the transition to green energy. Parliament has ratified the Credit Facility Agreement.

The purpose of the treaty is to finance state budget needs while promoting reforms in the energy sector. According to authorities, the reforms will focus on modernizing infrastructure, improving energy efficiency, developing renewable energy sources, protecting consumers, and advancing environmental and climate change policies. These actions aim to facilitate Moldova’s transition to a more sustainable and eco-friendly energy system.

The loan will be disbursed in a single tranche. It has a maturity of 15 years, including a five-year grace period. Repayment will be made semi-annually, in 20 equal installments.