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IMF grants Moldova new installment of 95 million dollars

10:48 | 08.12.2023 Category: Economic

Chisinau, Dec. 8 /MOLDPRES/- The IMF Executive Board completed the fourth review under the Extended Credit Facility/Extended Fund Facility (ECF/EFF) arrangements with Moldova, allowing for an immediate disbursement of about US$95 million (SDR 70.95 million). ECF/EFF implementation remains strong, with key reforms in fiscal governance, financial sector oversight, and the rule of law.

The Executive Board also approved an arrangement for Moldova under the Resilience and Sustainability Facility (RSF), in an amount equivalent to US$173 million (SDR 129.375 million). The RSF will support Moldova’s efforts to strengthen resilience against climate shocks, support energy sector reforms, enhance domestic financial sector preparedness, and mobilize sustainable finance.

Moldova faces ongoing challenges related to spillovers from Russia’s war in Ukraine. Policies are appropriately focused on crisis mitigation and recovery; as risks abate, policies should align with long-term development goals while ensuring fiscal sustainability. Ongoing institutional and policy reforms will contribute to boosting medium-term, sustainable growth.

Mr. Kenji Okamura, Deputy Managing Director, issued the following statement:

“Performance under the ECF/EFF remains strong, despite the complex environment. Spillovers from Russia’s war in Ukraine continue to weigh heavily on the Moldovan economy. The impact of the energy crisis was partially alleviated with the implementation of effective contingency plans, and progress has been achieved in diversifying energy sources. Inflation decelerated more rapidly than expected, owing to a well-calibrated monetary policy response and a swift decline in food and fuel prices. The rebound is projected to be modest in the near term supported by a pickup in domestic demand. Despite the challenging environment, Moldova has demonstrated resilience and maintained a strong reform momentum," the official said.

It is expected that the next Article IV consultation with Republic of Moldova will be held in accordance with the Executive Board decision on consultation cycles for members with Fund arrangements.






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