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Romania's president stops planned $161M loan to Moldova

Romania's president refuses to sign off on $161 million loan to Moldova, sends bill back

Romania's president stops planned $161M loan to Moldova

BUCHAREST, Romania (AP) -- Romania's president has refused to sign off on a 150-million euro ($161-million) loan to Moldova that was approved by Parliament last month.

President Klaus Iohannis on Monday sent back the bill for the five-year loan to Parliament, saying the financial aid was not "opportune" without a guarantee that Moldova would continue pro-European reforms.

The loan agreement was signed in Moldova on Oct. 7, initiated by Victor Ponta, who resigned as Romania's prime minster last week after mass protests over a nightclub fire.

Moldova's Parliament dismissed its government on Oct. 29 after a former prime minister was arrested over bank fraud.

The country has been mired in political instability since up to $1.5 billion went missing from three banks ahead of November 2014 parliamentary elections.

Updated : 2021-09-18 12:18 GMT+08:00