The IMF mission and the Moldovan authorities made significant progress on the negotiation of a new IMF arrangement, and discussions are well advanced. Only a few issues remain outstanding and discussions will continue from Washington in the coming days, IPN reports.
In an end-of-mission press statement issued by the IMF team that visited Chisinau from July 5 - 15, 2016 it is said that the Moldovan economy is recovering from last year’s recession but the sources of growth are so far subdued. Following a contraction of 0.5 percent in 2015, economic activity expanded weakly in the first quarter of 2016, led by private consumption. Inflation is declining and is likely to remain low.
The possible three-year arrangement under the IMF’s Extended Fund Facility and Extended Credit Facility (EFF/ECF), in the amount of about $180 million, is designed to support the country’s economic reform program.
At the end of the visit, Ivanna Vladkova-Hollar said the team held productive discussions with senior government and National Bank officials. Discussions focused on the outlook for growth, financial sector policies, the sustainability of public finances and structural reforms needed to improve the business climate and attract investments.
