Annulling Loan Agreement with the Russian Federation Will Entail Suspension of Several Projects

Prime Minister Ion Chicu said that if the loan agreement with Russia is canceled, the government will be forced to suspend the implementation of several projects.

He said this on Wednesday during a Cabinet meeting, which was broadcast on-line, infotag.md reports.

“If the Constitutional Court cancels the loan agreement with the Russian Federation, the government will be forced to again amend the state budget law for this year. We will be forced to refuse to finance a number of infrastructure development and road repairs projects, as well as curtail some programs to support business during the crisis caused by the coronavirus pandemic," Chicu said.

According to him, if the agreement is canceled, the government will not be able to finance expenses worth 4 billion lei (200 million euros), of which 1.4 billion lei (70 billion lei) for the repair of roads in 900 villages, the VAT refund program for economic agents affected by the crisis - 1 billion lei (50 million euros) and the program for subsidizing interest rates on loans - 1.6 billion lei (80 million).

"I emphasize that all speculations about some articles of the loan agreement are only political or geopolitical in nature. Some political forces deliberately speculate hoping to deprive the government of the opportunity to finance priority spending," the prime minister said.

He expressed hope that the agreement would enter into force and the government would be able to fulfill all its obligations.

"But people should know that if this document is canceled, we won’t be able to find this money elsewhere, and the responsibility will lie with those who engage in political games to the detriment of the country's and people's interests," Chicu emphasized.

The Constitutional Court has appointed consideration of deputies' requests for a loan agreement with Russia on May 7.