Moldova to be able to use 165 million Special Drawing Rights, offered by International Monetary Fund
16:24 | 22.09.2021 Category: Official
Chisinau, 22 September /MOLDPRES/- Moldova will be able to use 165.3 million Special Drawing Rights (SDRs), the equivalent of about 236 million dollars, allocated from the International Monetary Fund (IMF). Those financial resources will be used to finance the budget deficit. The draft law on the implementation of the SDR allocation by the IMF was approved at today's Government meeting, the government's communication and protocol department has reported.
According to the document, the National Bank of Moldova will transfer to the Ministry of Finance the financial means under the established terms and conditions, based on an agreement to be concluded between the two institutions.
The SDR allocation provides liquid assets to member countries without any repayment or cancellation obligations. Thus, Member States do not have to fulfill any conditionality in order to receive their share of the SDR allocation. Respectively, each Member State may use the SDR allocation according to internal needs.
In accordance with IMF procedures, each Member State is to pay a quarterly interest and an annual fee.
The SDR interest rate is floating and on September 20, 2021 it was 0.05%, and the annual commission rate is also floating and currently it is about one thousandth of a percentage.
The SDR allocation is a non-reimbursable source, and the expenses related to their service will be made from the state budget and will be provided in the draft rectification of the Budget Law for 2021.