Romania Offers Cash-Strapped Moldova Loan

Romania is to loan 150 million euro to Moldova to help it bolster its currency and continue work on several infrastructure projects.

The five-year loan, with a 1.5 per cent annual interest rate, was signed late on Wednesday in Chisinau, Moldova, but has to be approved by both countries' parliaments.

The first tranche of the money, worth some 60 million euro, is expected to be delivered by the end of the year.

The money comes at a difficult moment for Moldova, as the former Soviet country is almost bankrupt after up to 1.5 billion US dollars vanished last year from three Moldovan banks.

Early this week, the IMF said it would not offer any new loans to Moldova, dashing the government's hopes of an immediate agreement to help cover pensions and salaries.

For almost a month, rallies have been held held every day in Chisinau, with thousands of people protesting against the pro-Western government's failure to come to grips with corruption and implement genuine reforms.

The protesters want an investigation into the "bank robberies", early elections and for the President, Prime Minister, and other officials to resign.

Romania is trying to help the pro-European government in Chisinau, but experts say this should not be done unconditionally.

"The loan is cheaper than anything else Moldova would get elswhere, considering the country is almost bankrupt, and the money is neccessary for Moldova's survival," political analyst Dan Dungaciu said.

"But Romania should have made clear requests for Moldova to really start reforms and to keep its pro-EU stance," Dungaciu added.

Romanian Prime Minister Victor Ponta said recently that Romania has to help Moldova in order to prevent the country from falling back under the control...