Moldovan government, IMF mission reach staff-level agreement following third evaluation of economic programme

Chisinau, 27 March /MOLDPRES/ - Prime Minister Pavel Filip has had a meeting with the team of experts of the International Monetary Fund, led by Ben Kelmanson, on the results of the third monitoring of the economic programme led by the Fund. The IMF Mission and the Moldovan government reached a staff-level agreement, in the context of the third evaluation of the economic reforms programme supported within the three-year agreement, financed based on the Extended Credit Facility (ECF) and Extended Fund Facility (EFC), the government’s communication and protocol department has reported.        

The IM Executive Board will analyze the mission’s report, possibly as early as in  next May, after Moldova’s authorities implement a string of preliminary actions. Following the completion of the programme’s evaluation, Moldova will receive about 34.9 million dollars.     

Prime Minister Pavel Filip thanked the IMF team, as well as the cabinet colleagues for the job done in carrying out the evaluation mission. The PM stressed the major importance of the agreement with IMF, which represents a signal of trust for Moldova and opens the way also to other financings on behalf of development partners.   

“The relations with the other development partners depend on the way the relations with IMF unfold. We are determined to carry through the entire agenda of reforms. We are happy with the positive results – the 4.5-per cent economic growth in 2017, as well as the increase of investments in the country’s economy,” Pavel Filip said.   

The prime minister noted that, on 23 March, the State Tax Service registered a 585.9-million-lei record sum of revenues in the national public budget and a sum of 468 million lei in the state budget, of which 310 million was collected from the income tax. 

For his part, the head of the IMF experts’ mission, Ben Kelmanson, said that Moldova’s authorities had continued to make progress in strengthening economic policies and removing vulnerabilities from the financial and banking sectors. The IMF official noted that the efforts made had contributed to maintaining the financial stability and consolidating the basis for achieving the long-term goals.     

“We forecast a stable economic growth, at the level of 3.8 per cent. The firm continuation of the efforts to rehabilitate the financial and banking system, including through improving the governance and the financial situation of the commercial banks, as well as of the efforts of strengthening the framework of regulation and supervision, are vital for maintaining the financial stability and backing the economic growth and encouraging the creation of new jobs,” Ben Kelmanson said.     

In the context, Pavel Filip specified that a list of priorities had been established to spend the money from foreign financings as efficiently as possible. At the same time, the PM noted that the government would ensure the rectification of the 2018 budget in optimum period, of the medium-term budgetary framework and the approval of the budget law for 2019 till the end of the current parliamentary session.   

According to the conclusions of the IMF experts’ mission, the carrying out of the state budget for 2017 and the budgetary and fiscal policy promoted by the authorities remain aligned to the goals assumed within the programme and contribute to the promotion of measures which will boost the economic growth. In continuation, emphasis will be put on efforts due to lead to improving the situation in the sector of public investments and social expenses, implementation of fiscal and customs reforms and optimization of expenditures.   

“The authorities continue undertaking measures due to contribute more to achieving the medium-term goals, including through consolidation of the economic governance, fighting the shadow economy and reducing the administrative burden and the burden of compliance with the regulation requirements. The enhancement of transparency and predictability and ensuring a good governance in the energy sector remain priority,” Ben Kelmanson.    

A team of experts of the International Monetary Fund, led by Ben Kelmanson, was on a working visit to Chisinau on 15-27 March 2018, to hold discussions with Moldova’s authorities, in the context of the third monitoring of the economic programme supported by IMF.