Vlad Filat: Economic recovery could start in first quarter of next year

Moldova could improve its macroeconomic indicators and obtain an economic growth from 2010 if the measures agreed with the International Monetary Fund in the preliminary agreement on the new economic program for the next three years are implemented. According to Prime Minister Vlad Filat, the measures are aimed at improving the economic situation and obtaining gradual economic growth, Info-Prim Neo reports. The Premier said that the economic recovery could start in the first quarter of the next year. The budget deficit for this year will be reduced from 16 to 9% of the GDP and then to 3% in 2012. No foreign resources might be needed from 2011 to cover the budget deficit. The current account deficit is projected to be 10% of the GDP. It can be covered from foreign direct investment and foreign financial assistance, the Premier said. It is planned that the economic growth in 2010 will be 1.5%, while in 2012 – 5%. The financial assistance that will be provided by the IMF to implement the economic program for the next three years will total US$590 million. Of this sum, US$295 million will go to cover the budget deficit, US$150 million of which for the next year, while US$295 million will be used to maintain the foreign exchange reserves of the central bank. Vlad Filat said that the money for covering the budget deficit will be provided by the IMF under the Extended Credit Facility. The loan is repayable in ten years, with a grace period of five years and a yearly interest rate of 0.25%. The loan for maintaining the central bank's foreign exchange reserve will be repayable in five years, with a grace period of three years and an interest rate of 1.3% a year.