Moldova's new program with IMF to deepen structural reforms

Moldova's new cooperation program with the International Monetary Fund will focus on maintaining macroeconomic stability and deepening structural reforms, stated National Bank Governor Dorin Dragutanu. According to the Governor, negotiating a new cooperation program with the IMF is very important for Moldova to help it enhance its credibility in relation with its partners and foreign investors. Talking about the financial component of the new program, Dragutanu said Moldova should not turn down loans offered by the IMF if such offers are made. “When you are offered money at a low interest, it's unwise to refuse. We do know what to do with these inexpensive loans. Besides, it's one thing when you both owe money and have money, and it's totally different when you owe money but don't have any”. Dragutanu also said that the National Bank of Moldova has managed to strengthen its foreign currency reserves, increasing them by $95 million over the last month to $2.326 billion. “It's a good sign for both our creditors and our trade partners”. Dragutanu admitted that the money borrowed from the IMF to consolidate foreign reserves adds to Moldova's foreign debt. “But it is wrong to calculate, like some experts do, by how much the debt per capita will rise due to the IMF loans, because this money exists, it is kept at the NBM and can be returned at any time. There is no way the money from the IMF can worsen the country's foreign debt situation”. An IMF assessment mission will be in Chisinau starting November 7. Public debt, according to the 2013 State Budget, will be at the end of next year 21.6 billion lei, including 15.15 billion representing foreign debt ($1.3 billion), and will constitute 21.7% of the GDP.