The signing of an agreement with the International Monetary Fund is a preconditions for strengthening the relations with the development partners such as the World Bank and the Government of Romania, director of the Market Economy Institute said in an interview for Radio Free Europe. According to him, all the partners withdrew and wait for an accord to be signed with the IMF and this position is a diplomatic one, of separation, so as not to assume the own assessment of particular developments, IPN reports.
“This happens because the IMF is known for a set of diverse mechanisms for putting conditions and occupying rigid positions on different governments, for pressing the governments. Usually, the IMF comes in moments when the states are on the verge of collapse or default and in such situations the IMF can use its rich experience of pressing governments and of making them fulfill particular commitments,” stated Roman Chirca, noting that the partners are waiting for deeds, not only rhetoric as to the implementation of reforms so as to see that Moldova indeed has serious reform intentions.
As regards the time limit for signing an agreement with the IMF, the economist said there are a series of formal procedures and the speed at which the negotiations will be held is the speed at which Moldova is ready to accept the IMF’s conditions unconditionally or on some conditions. “Normally, this is a rather consistent list. The previous years it included 70-80 conditions for the Republic of Moldova. I think that now there will be a series of areas covered by this list. The Fund will adopt a rigid position and will concede not much,” stated Roman Chirca.
The director of the Market Economy Institute noted that a series of conditions intertwine as priorities and these will ensure stability, according to the perspective of the IMF. These include: elimination of pension rises, excise rises or rises in any other taxes that can ensure incomes into the budget; elimination of useless costs that would ensure a smaller deficit, but also larger budget incomes and smaller costs.
