Moldova's government said on Friday it has concluded an agreement with Chinese government to receive a 60 million yuan (9.5 million/8.2 million euro) grant for economic development.
The grant will contribute to implementing more joint projects in diverse fields, government secretary general Tudor Copaci said in a press release.
It is not the first time when Moldova gets financial support from China. In 2011, Moldova received a $65 million (57.6 million euro) loan from the Export-Import Bank of China (Exim Bank) for the modernisation of 50 km of roads.
Later on, Moldovan officials travelled to China in order to increase supplies of wine industry products to the Chinese market as in 2013, Russia announced a ban on imports of Moldovan wines and spirits, saying they contained impurities.
In July 2009, China Overseas Engineering Group, COVEC, offered a $1 billion loan for the implementation of infrastructure projects to Moldova. However, Moldova refrained from borrowing the funds, reportedly due to pressure from the IMF, which lent Moldova some $574 million in the following year under the condition of economic reforms.
In February, the EU said is prepared to help Moldova if the country stays on a pro-European path through reforms and that it is waiting for the visit of the IMF mission to Moldova before making a more concrete move
The IMF visit ended in mid-March and concluded with a promise from the fund to continue discussions with Moldovan officials over the following months. The fund emphasized that the outlook remains challenging and requires skillful economic management.
On February 1, Romania put seven conditions which Moldova should meet in order to receive a 60 million euro loan. This would be the first tranche of a 150 million euro financial aid package agreed in the autumn if it commits to reform.
The conditions relate to Moldova's banking system, IMF agreement, efficient legislature, EU association agenda, and anti-corruption measures. Until Moldova meets these terms, Romania provided it with humanitarian aid consisting of food and fuel worth 3.7 million euro.
In October, Romania and Moldova signed an agreement on a five-year loan with an interest rate of 1.5%. However, a month later Romania's president Klaus Iohannis asked parliament to reconsider its terms, saying there are no guarantees that Moldova will continue reforms and respect the commitments it had undertaken.
($=0.8871 euro)