“The population must not expect immediate effects of the collaboration with IMF, but must grow firm around the Government”- Prime Minister

The prime-minister Vasile Tarlev states that the population must not wait the time it will feel the benefits of the financing agreement approved recently by the International Monetary Fund (IMF), but must grow firm in order to contribute to the efforts of the Government regarding social-economic development of the country. “Only when the population will acknowledge this fact the time when we will live better is to come” and “the ones that wait the results of some “groups’” work will never feel the results of the agreement with IMF”, declared the prime-minister to the press, on Wednesday, May 10. Vasile Tarlev mentioned that it is the first time when the Government elaborates the IMF Financing Program. Once the agreement was approved, Republic of Moldova obtained the permission to participate at the discussions regarding the rescheduling of bilateral external debts, at the Paris Club, that will take place from May 11 to 12. A group of experts headed by the minister of Finance Mihai Pop leaved for Paris to conclude negotiations with creditors. According to the prime-minister, the first installment amounting to 16, 9 million USD will be obtained until the end of May. It will be used for strengthening the financial reserves of the state. The next installments will be redirected to the National Bank of Moldova for maintaining the national currency, the states reserves, improving the business environment. One of the main conditions imposed by IMF is continuing the reforms in the area of central public administration and reorganizing the State Council of Creditors, by giving their tasks to fiscal bodies. As well, IMF solicits the improvement of the macroeconomic indicators, developing the state infrastructure, more efficient management within public administration etc. The executive council of IMF, approved on May 5 a new agreement with the Republic of Moldova on a three years term, on the grounds of the Mechanism of Poverty Reduction and Economic Growth, amounting to 118, 2 million USD or 80, 08 million of Special Drawing Rights (SDR). The IMF credits are given in a preferential regime, with an interest installment of 0, 5% for a period of 10 years. Disbursements will take place every 6 months and after each installment IMF evaluations will be performed.