IMF mission to visit Chisinau on February 21-28

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, 2007. The main task of the IMF mission is 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, in the light of recent developments such as the increase in gas prices, as well as the outlook of resuming wine exports to Russia. 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. As usual, Mr. Richardson and his team will hold a short press briefing at the end of this visit. 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. 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.