IMF Mission to discuss with authorities the fiscal policy for the next year

A Mission of the International Monetary Fund (IMF) is expected to visit Chisinau in the second half of March to discuss several aspects of the fiscal policy of Moldova for the next year. Minister of Economy and Commerce Igor Dodon has recently stated that until the Parliament approves the fiscal policy for 2008, the annual initiative of the Government, the proposals on changing the fiscal policy will be discussed with the experts during March. A mission from the IMF’s European Department, headed by Mr. Thomas Richardson, will work in Chisinau from Wednesday, February 21, to Wednesday, February 28, 200 to take stock of the past performance of the Government and National Bank in meeting commitments under the Poverty Reduction and Growth Facility programme PRGF, as well as to asses the macroeconomic outlook for 2007. On the structural side, it is expected that the focus of the program will continue to be on three areas: continued financial sector reform, improved fiscal management, and structural reforms designed to improve the business environment. On May 5, 2006 IMF’s Executive Board approved the PGRF arrangement with Moldova in the total amount of about USD 118.5 mln, the first instalment of which – about USD 17 mln – was transferred to the National Bank of Moldova in mid-May 2006. On December 15, 2006 IMF’s Executive Board approved an increase in the size of the loan to about USD 167 mln. The second disbursement was approved for an amount equivalent to about USD 48.2 mln. The PRGF is the IMF's concessional facility for low income countries. PRGF loans carry an annual interest rate of 0.5 percent, and are repayable over 10 years with a 5.5-year grace period on principal payments.