The Government asked for the revision of the contract with the International Monetary Fund so that this reflects the new economic context and ensures a significant rise in financing on the part of the foreign partners, especially in the form of direct non-reimbursable budget support, Prime Minister Natalia Gavrilița stated in a new conference held jointly with the mission chief of the IMF for Moldova Ruben Atoyan, IPN reports
According to the Premier, the economic consequences for Moldova of the war in Ukraine are being assessed this week together with the IMF mission led by Ruben Atoyan. The assessment is necessity for managing risks and budgetary implications. The necessity of additional financing has been agreed, but the sums will be yet determined.
Natalia Gavrilița noted that the war in Ukraine and the economic sanctions imposed against the Russian Federation have extensive consequences for the global economy and Moldova is also affected. However, the country’s macro-economic indicators are strong and the budget has a particular reserve and flexibility. The correct economic management of the last few months enabled Moldova to ask only for a program review, not yet for emergency financing.
In the current economic context, the Government will continue to focus on the support for the population so as to help the people cope with the price crisis, on energy efficiency measures and targeted support mechanisms in connection with the volatility on the energy market and also on measures to ensure food security.
For his part, Ruben Atoyan said the program with the IMF that took effect last December offers an additional safety mechanism in the current crisis. At the same time, the IMF and other international partners stand ready to support Moldova with additional financing. “We are confident that the additional support on the part of the IMF and other partners will help Moldova to diminish the impact of the crisis on the citizens and the economy and to assist the refugees from Ukraine,” stated Ruben Atoyan.
He noted that Moldova entered this difficult situation with a strong position, including with a reduced foreign debt, and this is important. The country has large budget reserves accumulated in the Government’s accounts, which offer maneuvering space, and reserves that can facilitate adjustments on the external side. The banking system is robust. All these will enable to design a solid package of policies for diminishing the impact of the crisis.
