Moldova may negotiate new programme with IMF: decision expected on February 27

Moldova may start negotiations for a new cooperation programme with the International Monetary Fund (IMF), with a decision to this effect expected on February 27, when the institution’s Board of Directors will examine the Article IV report for Moldova. Prime Minister Alexandru Munteanu has made statements to this effect at the show, Good Evening with Mircea Surdu, broadcast on the public television channel.

The PM said that the authorities were awaiting the conclusions of the IMF Board, which might officially open discussions on a new financing agreement.

“At the meeting on February 27, the Board of Directors of the International Monetary Fund will discuss the Article IV report on Moldova and will announce the start of negotiations on a new programme with our country. We are waiting for this news,” the prime minister said.

The PM specified that the previous programme with the IMF had ended in last December, without Moldova receiving the last financing installment, but that the current context is favorable for launching a new programme.

“The previous programme ended in December last year. It is true that we did not get the last tranche, but now we will have a new programme, with new objectives of the Government,” Alexandru Munteanu added.

According to the prime minister, financial markets are reacting positively to the recent economic developments in Moldova. He underlined that inflation was decreasing and that the National Bank of Moldova had repeatedly lowered the base rate.

“Inflation has decreased, and the National Bank has repeatedly reduced the refinancing interest rates. This means that money and loans are becoming cheaper, which is a good signal for the economy,” the prime minister noted.

Another important element highlighted by PM is the improvement of Moldova’s rating in the ranking of the Organization for Economic Co-operation and Development (OECD).

“Moldova has moved from category 7 to category 6 in the OECD rating. This means that, in the future, the cost of borrowing will decrease and we will be able to access financing at lower interest rates than before,” the prime minister said.

The authorities hope that a new agreement with the IMF will strengthen the macroeconomic stability, increase investors’ confidence and support the implementation of the reforms assumed by the government.