Summary of the Plenum of the Competition Council Decision no. ASS-44 as of 02.07.2015

The Ministry of Finance has notified to the Competition Council the support measure provided to the S.E. „Calea Ferata din Moldova”, in the form of a preferential loan for the purpose of purchasing locomotives and restructuring railway infrastructure. The loan, in the amount of 52.5 mil. Euro, is granted for a period of 15 years, including a grace period of 3 years.

In order to implement the proposed acquisition of locomotives and restructuring rail infrastructure of the S.E. „Calea Ferata din Moldova”, on 14.11.2014 was signed the loan agreement between the Republic of Moldova and the European Bank for Reconstruction and Development.

The support value of the Ministry of Finance to S.E. „Calea Ferata din Moldova” is the difference between the market interest rate and the interest actually paid, amounting to 1.147.082.196,75 MDL.

After examining the support measure it was found that the it meets all four conditions specified in art. 3 of the Law no. 139 of 15.06.2012 on state aid, thus being a State aid.

Based on the findings, the Competition Council Plenum decided:

1.    The measure notified by the Ministry of Finance, having as beneficiary S.E. „Calea Ferata din Moldova”, represents State aid within the meaning of art. 3 of Law no. 139 of 15.06.2012 on State aid.

2.    To authorize State aid offered to S.E. „Calea Ferata din Moldova” for the purchase of locomotives and restructuring railway infrastructure, with the support of the European Bank for Reconstruction and Development.