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.