The discussions on the second review of Moldova’s program under the Extended Credit Facility/Extended Fund Facility (ECF/EFF] arrangements will take place soon after the parliamentary elections and formation of a new government, Info-Prim Neo reports, quoting a press statement from the IMF. Completion of the second program review would enable disbursement of SDR 50 million, intended to support the 2011 budget (SDR 15 million) and further augment the National Bank of Moldova’s foreign reserves. The press statement says Moldova’s economy is gradually recovering from the recession. Recent indicators point to healthy economic growth in the first half of the year; budget execution has been strong; and the policies of the National Bank of Moldova have contained inflation pressures and contributed to the stabilization in the banking sector The IMF says the amended 2010 budget approved by the government this week has reallocated certain line item expenditures mainly due to pressures posed by recent shocks, notably summer floods, restrictions on selected Moldovan exports to Russia, and increased energy tariffs. “Even though the implied budget deficit slightly exceeds the program target, we expect that savings emerging during budget execution would allow all fiscal indicators to be kept within the IMF-supported program framework,” reads the statement. So far, Moldova received SDR 120 million (about US$ 184 million) under its ECF/EFF arrangements with the IMF. This assistance includes SDR 80 million (US$ 123 million) in support of the 2010 budget, and SDR 40 million (US$ 61 million) to replenish NBM’s foreign exchange reserves. In addition, the authorities have used SDR 114.3 million (about US$ 180 million), the bulk of Moldova’s share of funds distributed by the IMF to facilitate global trade and financial flows, to finance the budget deficit in 2009.