IMF mission ends consultations with Moldova on new economic programme

Chisinau, 27 July /MOLDPRES/ - The mission of the International Monetary Fund and Moldova’s authorities have reached an expert-level agreement on the programme of economic reforms, which will be supported through a three-year agreement, financed based on the Extended Credit Facility (ECF) and Extended Fund Facility (EFF). Thus, Moldova will get access to a financial assistance worth 558 million dollars, according to a press release by IMF.  

The new programme will be based on the progress made within the previous programme and will have the goal to back the re-launch of Moldova’s economy following the overcoming of the COVID-19 pandemic and advancement in the implementation of ambitious institutional reforms.    

On the period 7-24 July, the IMF experts’ team, led by Ruben Atoyan, held online discussions from the Fund’s headquarters in Washington with Moldova’s authorities on an economic programme supported by IMF.  

In the end of the consultations, Ruben Atoyan said that ‘’the expert-level agreement is scheduled to be approved by the IMF leadership and the Board of Executive Directors. We expect the IMF’s Board of Executive Directors to discuss the new programme with Moldova in next September, after the Moldovan authorities implement a string of preliminary actions, including in the field of independence of the central bank, supervising the financial sector and budgetary and fiscal transparency.’’     

According to the quoted source, the new programme supported through ECF and(EFF) will contribute to the maintaining of the macroeconomic stability after the overcoming of the COVID-19 pandemic and will catalyze the financing on behalf of other donors. Being based on the progress made within the previous programme, the authorities are set to advance within the new programme in the implementation of ambitious institutional reforms, in order to remove numerous vulnerabilities from the sectors of fiscal governance, supervising the non-bank financial sector, market regulation, prevention and combating of corruption and strengthening the rule of law state.     

„The reform of the governance of the National Bank of Moldova (BNM), backed by IMF, and the BNM’s performance during the implementation of the previous programme represents important success for Moldova. The successful cleaning of the banking sector after the large-scale bank fraud is due to the efforts of banking supervision made by BNM. An unequivocal commitment to the irreversibility of reforms in the banking sector is critical for the financial sector’s stability. The existence of an independent central bank contributes to the maintaining of the macroeconomic stability, backing the investors’ trust and protecting the financial system, all being pre-conditions of crucial importance for a sustainable and inclusive economic growth. The preservation of BNM’s independence is in Moldova’s interest and represents a condition of critical importance within the new programme supported by IMF,’’ the Fund’s expert said.