Continued resolute implementation of the IMF program remains critical for creating a solid foundation for strong, sustainable, and inclusive growth, catalyzing external financing, and entrenching reform momentum, stated an IMF mission, led by Ruben Atoyan, on concluding a visit for the third review of Moldova’s program under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements.
While the Moldovan economy contracted significantly in 2022, reflecting spillovers from Russia’s war in Ukraine, a modest recovery is expected in 2023, the mission found, among other things.
Ruben Atoyan announced that a staff-level agreement was reached with the Moldovan authorities on economic policies to complete the third review under the ECF/EFF arrangements. The agreement is subject to approval by the IMF’s management and board, which is expected by the end of April. Completing the review will make SDR 70.95 million (about $94.40 million) available to Moldova, bringing total disbursements under the program to nearly $369.30 million (about SDR 277.55 million).
“Program implementation remains broadly strong despite the challenging circumstances and overlapping crises. The authorities met all the quantitative performance criteria. Structural reforms are gradually advancing, with work still needed to promote the integrity, capacity, and independence of key anti-corruption institutions and enhance the enforcement of the anti-corruption legal framework. Good progress has been made toward eliminating inefficiencies and inequities in the tax system, including by institutionalizing tax expenditure reviews as part of the annual state budget. The new government reaffirmed sustained ownership of the program and signaled strong determination to advance prudent fiscal policies in support of economic resilience. With risks skewed to the downside, strong policy momentum remains critical, including to secure budget financing from external partners”, Ruben Atoyan was quoted in a press release.
“Moldova’s progress on the EU accession path will provide a critical anchor for strong implementation of reforms”, the IMF official added.
