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Moldova to receive 27 million dollars from IMF

10:44 | 01.12.2022 Category: Economic

Chisinau, Dec. 1 /MOLDPRES/- The International Monetary Fund (IMF) announced last night that together with the Moldovan authorities have reached a staff-level agreement on policies for completion of the second review of the program under the Extended Credit Facility and Extended Fund Facility.

"The agreement is subject to approval by the IMF’s Executive Board, which is expected to discuss the authorities’ request in January. Completion of the review will make SDR 20.65 million (about 27 million dollars) available to Moldova, bringing total disbursements under the program to about 287 million dollars," IMF says.

Fiscal policies agreed with the mission under the draft 2023 budget will focus on mitigating the economic and social fallout of Russia’s invasion of Ukraine and the energy shock. Within the budget envelope, priority should be given to responding to the rising cost of living and ensuring energy security. Mobilizing domestic revenues, enhancing spending efficiency, and strengthening fiscal governance and transparency will help entrench fiscal discipline and ensure debt sustainability. Securing concessional and grant financing from external development partners will require strong policies and sustained reform momentum.

“Risks are skewed significantly downward. Elevated energy prices, disruptions in natural gas and electricity deliveries, escalation of Russia’s war against Ukraine, and the rising cost of living could worsen the economic outlook, dent confidence, and test social cohesion, while aggravating already-difficult policy tradeoffs. On the upside, the rapid implementation of reforms envisaged under the program and continued support from external partners could help improve Moldova’s investment attractiveness and advance its European integration agenda", the IMF said.

An International Monetary Fund (IMF) team led by Mr. Ruben Atoyan held discussions on the second review of Moldova’s program under the IMF’s Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements in Chișinău and remotely during October 31 - November 29, 2022.


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