Lifeline for the Moldovan Railways. The Moldovan government will borrow from the national lottery to provide the money needed to run the national railway company. The loan for the Moldovan Railways will be repaid following an increase in share capital, made possible by a loan provided by the European Bank for Reconstruction and Development (EBRD).
Minister of Infrastructure and Regional Development Andrei Spînu made public that in order to remedy the salary arrears of employees of the Moldovan Railways, his government will resort to a loan worth 35 million lei, according to bani.md. This loan will be obtained from the Moldovan Lottery, a state-owned enterprise known mainly for its gambling activities. The money will be used to pay salaries for one month.
A widely discussed decision on the Moldovan Railways
According to the minister’s statements on a TV show, the financial move is part of a plan to pay salaries. However, he did not give details of the terms of the loan offered by the Moldovan Lottery. He only said that it was a decision of the boards of the two companies and that there was a contract. However, the decision to take a loan from the Lottery is raising questions and discussion in the public about the rationality of this choice and the long-term implications.
While government officials have assured that the move is part of a carefully thought-out strategy to ensure the financial viability of the Moldovan Railway, many are curious to see how the process will unfold and what the long-term effects of this unconventional decision will be.
In other news, the government decided at Wednesday’s meeting to increase the share capital of the state railway company. The Ministry of Finance will allocate, from the loan granted by the European Bank for Reconstruction and Development under the Project for the purchase of locomotives and restructuring of railway infrastructure and the loan granted by the European Investment Bank under the Project for the railway infrastructure and rolling stock fleet of the Republic of Moldova, financial means in the amount of up to 728.4 million Moldovan lei (equivalent to 34985.9 thousand euros) to increase the share capital, according to the draft normative act.
The Public Property Agency, as the founder, will ensure that the amendments to the statute of the State Enterprise “Railways of Moldova” are made in order to increase the share capital and submitted to the Public Institution “Public Services Agency” for state registration.
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