The spillovers from the war in Ukraine and international sanctions on Russia and Belarus, including trade disruptions, higher and more volatile energy prices, and the continued influx of a large number of refugees, have had a significant impact on Moldova and led to increased external financing needs, Kenji Okamura, Deputy Managing Director of the International monetary Fund (IMF), stated at the conclusion of his visit to Moldova, IPN reports, quoting the IMF Office in Moldova.

The official said that the discussions with refugees from Ukraine during his visit helped him to better understand their difficult situation. “I have visited several parts of the country and witnessed the generosity of the people of Moldova and their warm hospitality to the refugees which deserve high praise. I call on the international community to continue supporting Moldova’s integrative approach to refugees and its efforts to forge ahead with reforms, while dealing with a series of crisis,” said Kenji Okamura.

He commended the Moldovan authorities for their prudent fiscal and monetary policies and swift response to the spillovers from the war in Ukraine and inflation. “In my discussions, I welcomed the authorities’ strong ownership of their ambitious governance reform agenda and their transparent response to the energy crisis. These reforms are critical to improve fostering inclusive and sustainable growth,” noted the IMF Deputy Managing Director.

On May 11, the IMF Executive Board approved additional financial assistance to Moldova to help the country address the challenges resulting from the war in Ukraine, catalyze additional external financing, and provide needed support to the most vulnerable.