Moldova received the first tranche of IMF credit

Only 5 days after the approval of the Financing Program of the International Monetary Fund (IMF), the National Bank of Moldova (BNM) got the first tranche of IMF preferential credit, worth about 16,9 million dollars. BNM spokeswoman Rodica Teleuca announced about this. According to her, IMF credit has the same meaning as the state’s foreign currency reserves, namely keeping the stability of the national currency and payment balance stability. The reserves are used in crisis situations. The next tranches will be used for implementing the goals of the Economic Growth and Poverty Reduction Strategy (SCERS). The NEW IMF Financing Agreement for Moldova was approved on 5 May 2006, for a 3-year term, on the basis of the Poverty Reduction and Economic Growth Mechanism, worth about 118,2 million dollars, or 80,08 million of Special Drawing Rights (DST). IMF credits are provided in preferential regime, with an interest rate of 0.5%, for 10-year term and a 5-year grace period. IMF will make an evaluation after every tranche. Starting 1993, Moldova concluded 6 agreements with IMF for supporting Governmental Economic Adjustment Programs – Compensation and Exceptional Financing Mechanism (CCFF), Structural Reform Financing Mechanism (STF), Stand-by Agreements (SBA) and Enlarged Financing Agreement (EFF). The total amount of unpaid credits was at the end of March - 60,43 million DST. Moldova became IMF member on 12 August 1992. RM quota in IMF is of 123,2 million DST, or about 155,1 million dollars, amount equal to 0.06% of the total amount of quotas. The voting power of Moldova in IMF is of 1,482 votes, representing 0.07% of the total number of votes.