IMF to take stock of Moldova’s performance in implementation of assumed obligations

The Executive Board of the International Monetary Fund will assess, in its meeting scheduled for July 13, Moldova’s achievements in implementation of the obligations assumed in front of international institutions, said Johan Mathisen, IMF Resident Representative to Moldova, in a meeting with Speaker Marian Lupu. The IMF official has pointed out that the IMF financing programme is successfully implemented by Moldova. In his words, Moldova has achieved its macroeconomic objectives and registered an upward trend with respect to reducing inflation. Mathisen also welcomed the adoption of laws regulating the denationalisation and administration of public property and the establishment of the Megaregulator in the non-banking financial market. At the same time, the collocutors emphasised the need for speeding up the finalisation of the laws governing public service and on fighting money laundering. Marian Lupu pointed out that the authorities will continue to prompt reforms and to put into practice the obligations assumed in front of international financial institutions. The Deputy Northeastern Division Chief in the IMF’s European Department, Thomas Richardson, has previously said that the Fund could approve in late June a new increased disbursement to support the implementation of macroeconomic policies and structural reforms in Moldova. The second instalment could amount to USD 33 mln, compared to earlier planned MDL 16.9 mln for each quarter of the year. In December 2006, the second instalment offered by IMF under the Poverty Reduction and Growth Facility (PRGF) arrangement amounted to 48.2 million dollars. On 5 May 2006 IMF’s Executive Board approved the PRGF 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 15 December 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.