International Monetary Fund to grant 27 million dollars to Moldova
11:26 | 22.09.2022 Category: Official
Chisinau, 22 Sep. /MOLDPRES/- The IMF Executive Board has concluded the review of the ECF-EFF financing program, supported by the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF). Thus, Moldova can access 27 million dollars, which will be meant for the implementation of essential reforms to increase the country's resilience and cover socio-economic expenses, the government's communication and protocol department has reported.
The funding is necessary as the war in Ukraine continues to affect the Republic of Moldova - inflation, rising food and energy prices, and the risks on the energy crisis imply major effort of the government. In this context, the IMF directors appreciated the Moldovan authorities who despite the difficult environment, respect the firm commitment to carry out structural reforms supported by the IMF in the fiscal and financial sectors, strengthening the rule of law and fighting corruption.
The directors welcomed the policies promoted by the authorities to protect the most vulnerable people from escalating energy and food costs. At the same time, they pointed out the importance of increasing the impact of social assistance programs, expanding the domestic tax base and advancing energy and state-owned enterprise reforms.
The Executive Board also urged the authorities to continue to ensure the promotion of an appropriate policy mix, given persistent inflationary pressures and budget financing constraints. They reiterated that to cope with shocks that may become more persistent, it will be extremely important to continue to ensure exchange rate flexibility and maintain adequate foreign exchange reserves.