Moldova to receive 94 million dollars from IMF
14:48 | 14.03.2023 Category: Economic
Chisinau, March 14. /MOLDPRES/- The Republic of Moldova will receive 94 million dollars under the current Program with the International Monetary Fund (IMF). The decision was announced today in Chisinau by Prime Minister Dorin Recean and the head of the IMF mission to Moldova, Ruben Atoyan, who was in our country for the last two weeks as part of the third evaluation mission.
"We discussed the macroeconomic developments, we evaluated the perspectives and risks that still persist, I mean the economic, macroeconomic risks, those related to possible increases in energy prices and their volatility. We undertook to resolutely implement the program agreed with the IMF, especially with regard to macroeconomic stability. During this visit, we reached an agreement that our country can access 94 million dollars from the current program with the IMF", said Prime Minister Dorin Recean.
Ruben Atoyan said "the program with the IMF is broadly carried out within the agreed parameters, despite difficult circumstances and crises", and the institution "forecasts a modest recovery of the Moldovan economy in 2023". "We have completed the third evaluation within the program supported by the IMF. This agreement is to be approved by the IMF's management and Board of Directors by late April. Following the completion of the current evaluation, the Republic of Moldova will be able to access about 94 million dollars. The program is carried out broadly within the agreed parameters despite difficult circumstances and crises. The authorities met all the quantitative performance criteria. Structural reforms are gradually advancing, but efforts are still needed to promote the integrity and independence of the most important institutions in preventing and fighting corruption. Satisfactory progress has been made in eliminating inefficiencies in the tax system. The new Government has reiterated its firm commitment to implement the program and has given clear signals that it is determined to promote prudent fiscal and budgetary policies that will strengthen the economy's resilience," the official said.
According to the IMF official, in 2022, the economy of the Republic of Moldova contracted strongly due to the repercussions of the war in Ukraine, low demand against the background of high inflation and the increase in living costs, as well as the volume of agricultural production lower than expected. "We predict a modest recovery of the economy in 2023 supported by the restoration of domestic demand and the improvement of economic growth prospects in the states that are commercial partners of Moldova. Inflation slowed because the BNM reacted proactively to limit spillover effects and anchor inflationary expectations. The budgetary indicators in 2022 remained robust", said Ruben Atoyan.