Moldovan government, IMF reach expert-level agreement within third evaluation of programme with Moldova

Chisinau, 14 March /MOLDPRES/ - The International Monetary Fund’s mission and Moldova’s authorities have reached an expert-level agreement on the policies needed to finish the third evaluation of the programme supported through the Extended Credit Facility (ECF) and Extended Fund Facility (EFF). The agreement is to be approved by the IMF leadership and the Fund’s Board of Directors till late next April. Following the current assessment, Moldova will be able to access about 94.40 million dollars within the present programme and already budgeted this year, the government’s communication and protocol department has reported.      

The results of the third monitoring of the economic programme were discussed at a meeting of Prime Minister Dorin Recean and the IMF experts’ team. The sides stressed the importance to continue the programme for economic growth, which brings macroeconomic stability, helps the country access foreign financing on easy terms and back the reforms for the benefit of the citizens and on the country’s irreversible way to the European Union.   

„We assumed to resolutely implement the programme with IMF, especially as regards the macroeconomic stability. In this respect, we will mobilize the domestic resources, will optimize the expenses and the discipline of the governance, including the budgetary and fiscal discipline. Today, I say clearly and directly: the authorities ensure the stability in Moldova and take care of the people’s safety, in order to efficiently carry out the programme of reforms, which must increase the number of jobs, citizens’ incomes, salaries and encourage the economic development,’’ PM Dorin Recean said.      

For his part, the head of the IMF mission for Moldova, Ruben Atoyan, stressed that, despite the difficult circumstances and the crises unfolding concomitantly, the programme is carried out, generally, in the parameters agreed upon and the structural reforms advance gradually. At the same time, while the authorities have managed to ensure the country’s energy security so far, the economy contracted significantly in 2022, reflecting the repercussions of Russia’s war in Ukraine. Yet, an improvement of the economy is expected in 2023.   

„The progress recorded by Moldova on the way of accession to EU will also represent an essential support for the firm implementation of the reforms. We will be with you and we continue providing support to Moldova and its citizens,’’ Ruben Atoyan said.  

According to IMF, the authorities of Moldova made progress as regards the removal of the inefficiency and inequities from the fiscal system. At the same time, based on the report, a string of subjects were established, on which the authorities will focus their efforts on the next period. Among them, there is the promotion of a prudent budgetary and fiscal policy, due to strengthen the economy’s resilience, as well as the stimulation of the integrity and independence of the most important institutions from the field of prevention and combating of corruption.  

The Moldovan authorities’ programme, backed by IMF, has duration of 40 months and was approved on 21 December 2021. In May 2022, the overall volume of crediting was increased to about 826 million dollars, of which 287.2 million dollars has been already disbursed.   

The financing based on ECF sees an annual interest rate of 0 per cent, a grace period of five years and a half and a repayment period of ten years. At the same time, the financing based on EFF provides of an annual interest rate equal to the basic rate of interest for the Special Drawing Rights, a repayment period of ten years and a grace period of four years a half.      

After the meeting, PM Dorin Recean and the head of the IMF mission for Moldova, Ruben Atoyan, gave a news briefing.   

Photo: Government