Without assistance from the International Monetary Fund (IMF) and other donors associated with it, it will be hard to cover the gaps in the budget given that the forecasts concerning the financing of the budget are rather gloomy, said economist Iurie Morcotylo, of the independent think tank “Expert Grup”.
In an interview for Radio Free Europe, quoted by IPN, Iurie Morcotylo said 2014 showed that we can exist without the IMF’s money, but we should take into account the fact that 2014 was a rather good one, with economic growth and with higher remittances, with a normal state debt and with no problems with the banks. If an IMF mission comes to Moldova, it will first of all ask for accurate figures and mechanisms of financing and for a plan of action on the part of the Government for remedying the situation in the financial-banking sector. Without such detailed information, the negotiations will be practically blocked
The economist also said that the IMF, when proposing a new program of assistance to a country, usually imposes harsh conditions such as the optimization of budgetary costs and minimization of salary and pension raises in the budgetary sector. If a new IMF mission comes, the banking sectors will be a top priority. “I do not expect negotiations to be initiated or an IMF delegation to come earlier than in the third quarter of this year. But the coming of such a mission is not a guarantee that the Government will accept the conditions imposed by the IMF for signing the agreement,” stated Iurie Morcotylo.
As to the draft state budget law, the economist said in the version it was published on Friday it is rather moderate. “We must yet not forget that this is not the final variant. It does not include figures concerning the loan provided to the three banks and the MPs may propose a number of changes so that the initial variant will be yet modified,” he stated.
Last week, Prime Minister Chiril Gaburici handed over a letter addressed to the Director of the IMF’s European Department Poul Thomsen to the chief of the IMF mission Ivanna Vladkova-Hollar. It says that the Government of Moldova is ready to open negotiations on a new program of cooperation with the IMF.
