CEB and Republic of Moldova sign a €70 million loan agreement to support emergency response to COVID-19

4 August 2020

Governor Rolf Wenzel signing an FLA agreement with the Republic of Moldova
Governor Rolf Wenzel signing an FLA agreement with the Republic of Moldova
PARIS - The Council of Europe Development Bank (CEB) and the Ministry of Finance of the Republic of Moldova signed a €70 million loan agreement to mitigate the impact of COVID-19 on healthcare and employment.

Out of the total sum a €40 million will be dedicated to the health component and will finance the following types of expenses: acquisition, under emergency procedures, of medical equipment and consumables; rehabilitation and transformation of medical spaces and units; and the mobilization of additional expertise, to ensure emergency response measures to COVID-19.

Another €30 million will be made available to support micro, small and medium-size enterprises (MSMEs), providing  financing for working capital and investment needs of MSMEs affected by the crisis, helping them to maintain viable jobs. This component will be achieved by on-lending to final beneficiaries through the participating financial institutions.

The Deputy Prime Minister and Minister of Finance, Mr. Serghei Pușcuța, thanked the CEB  for the ongoing  support provided to the country, stating that the agreement is an effective and prompt response to the needs of the Republic of Moldova in the fight against COVID-19 and the consequences of this pandemic.

CEB Governor Rolf Wenzel, signing the loan agreement for the CEB, said: “As the COVID-19 continues to weigh heavily on economies and societies, it is vital that our member countries increase their response capacities. We are pleased to support Republic of Moldova in its efforts to bolster the health system as well as to provide much needed help to small business impacted by the crisis.” 

Set up in 1956, the CEB (Council of Europe Development Bank) has 42 member states. Twenty-two Central, Eastern and South Eastern European countries, forming the Bank's target countries, are listed among the member states. As a major instrument of the policy of solidarity in Europe, the Bank finances social projects by making available resources raised in conditions reflecting the quality of its rating (AA+ with Fitch Ratings, outlook stable, AAA with Standard & Poor's, outlook stable and Aa1 with Moody's, outlook stable). It thus grants loans to its member states, and to financial institutions and local authorities in its member states for the financing of projects in the social sector, in accordance with its Articles of Agreement.