IMF to offer US$77m to Moldova

The International Monetary Fund (IMF) is ready to provide the next installment of the loan in the amount of $77 million to Moldova in support of its external reserve position, the head of the IMF mission Nikolay Gueorguiev said in a news conference in Chisinau, Info-Prim Neo reports. In the same news conference, Prime Minister Vlad Filat said the results achieved jointly are positive, while the program with the IMF is implemented efficiently. He said it is anticipated that the GDP growth this yearend will be 6.5%, while in 2012 – about 4%. The inflation rate is projected to be 9.75%, but will decrease to 6.5% towards the end of 2012. “We plan to switch to a system of better targeted social assistance in 2012. We intend to raise the minimum guaranteed income from 570 lei to 640 lei from January 1, 2012 and raise the social assistance budget from 360 million lei to 442.2 million lei,” said Vlad Filat. For his part, Nikolay Gueorguiev said that this year, strong domestic demand and booming exports have propelled real GDP well beyond its pre-crisis level. “However, the expected slowdown in global economic activity is likely to slow down the growth momentum in the period ahead, lowering the growth rate from 6½ in 2011 to 4 percent in 2012. Alongside, inflation should decline to 6½ percent and the current account deficit narrow to 11¼ percent of GDP in 2012. Owing to the successful implementation of the authorities’ program, Moldova will face these challenges from stronger fiscal and external positions,” he stated. The mission welcomed the authorities’ commitment to urgently upgrade tax administration, reform the mechanism for allocating agricultural subsidies, and clear government expenditure arrears. An International Monetary Fund mission for the fourth reviews under the Extended Credit Facility/Extended Fund Facility (ECF/EFF) arrangements with Moldova visited Chisinau during October 19–November 2.