The conclusions that will be formulated as a result of the IMF mission’s visit to Moldova can be different from those reached in the previous period. Economist Viorel Gârbu said the most important aspect is related to the Government’s intention to attract additional financial resources. In an interview for RFE/RL’s Moldovan Service, the economic expert said the IMF does not support the behavior of the current Government, which was shown also by other governments when they tried to find other sources of financing than those provided by the IMF or the World Bank, IPN reports.
According to Viorel Gârbu, the Chicu Government intends to follow such an approach and to attract funds from Russia and Belarus. “I think this will create particular tensions in the discussions that will be held in the course of this week and while the mission will be here,” stated the economist.
Asked why the IMF and, in general, the Western partners of Moldova look at such intentions with skepticism, Viorel Gârbu said that the IMF, on the one hand, is maintained with lending taxes and interest paid by the governments that get money from the institution. On the other hand, the IMF pursues a particular policy through the agency of these assistance instruments and when the governments do not agree with such policies, trying to obtain money from other sources, a conflict appears between the government’s intentions and the IMF’s policies.
He noted that the Government is free to act as it considers right. If it thinks that particular restrictions imposed by the IMF are counterproductive and knows to provide better solutions to the problems than those of the IMF, it can implement own initiatives. By the provided loans, the IMF assumes a part of the government responsibility of Moldova. If the Government intends to abandon this source, it must have capacities to assume responsibility for the policies it aims to implement.
This means that the Government is very efficient and knows very well what it does. This means institutions, economic policies, first of all financial, macroeconomic and monetary policies implemented by the National Bank.
An International Monetary Fund mission led by Ruben Atoyan is visiting Chisinau during January 22 – February 5, 2020. The mission will hold discussions with the authorities in preparation of the 2020 Article IV consultation and in the context of the sixth and final reviews of Moldova’s IMF-supported program under the Extended Credit Facility and the Extended Fund Facility arrangements. Moldova’s three-year IMF program, approved on November 7, 2016, is supported by a loan of about US$182 million, of which about US$160 million have been already disbursed.
