IMF staff , Moldovan government reach staff-level agreement

Chisinau, 27 July /MOLDPRES/ – The Moldovan government and International Monetary Fund experts have reached a staff-level agreement on an economic reform program to be supported by a three-year Extended Credit Facility and Extended Fund Facility (ECF/EFF) arrangement, the government’s communication and media relations department has reported.

The new ECF/EFF arrangement will first and foremost aim to make swift upfront improvements in financial sector governance and supervision. The new program would play a catalytic role for unlocking donor support to sustain economic development and rests on two pillars: Policies to ensure macroeconomic and financial stability.

Among the measures supported by the program, there are reforms on improving the business environment, attracting investments and enhancing the economic growth potential of Moldova, fighting corruption, supporting sustainable energy policy and implementing budgetary and tax reforms. At the same time, monetary policy will continue to be focused on maintaining price stability in the context of a flexible exchange rate regime. Fiscal policy will focus on using available margins wisely, to strengthen public investment and support social and developmental objectives.

"This is an important step for the reliability of the Moldovan economy, our reforms of the last months are validated, and as a matter of fact, further steps are to be taken to modernize the country. Reforms continue and will result in a decent living for the citizens," said Prime Minister Pavel Filip referring to the agreement reached with IMF.

Under the Agreement, access to financing is proposed to be set at a level 75 percent of Moldova’s share to the International Monetary Fund, about 179 million dollars. At the same time, the new programme will help unlock the financial support provided to Moldova by other donors and development partners.

The Agreement is to be approved by the management and the Executive Board of the International Monetary Fund, due to assemble meet in October, this year.

We remind that, during the period of July 5 – 15, 2016, an IMF mission led by Ivanna Vladkova-Hollar paid a visit to Chisinau to discuss the conditions for signing a new country programme with Moldova.

(Editor L. Alcaza)