Moldova to receive 564 million dollars on behalf of International Monetary Fund

Chisinau, 21 October /MOLDPRES/ - Moldova’s authorities and the IMF mission have reached an agreement at the level of experts on a new programme of economic reforms. The programme, worth 564 million dollars, will have a duration of 40 months and will be financed based on the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF).     

The positive result of the negotiations was announced by Prime Minister Natalia Gavrilita and IMF Represent Representative in Moldova Rodgers Chawani at a news briefing today, the government’s communication and protocol department has reported.    

„A programme approved with IMF is a catalyst of new financings on behalf of other development partners, brings better trust for investors and gives the government a better freedom in the development of social programmes, the ones on economic support and infrastructure,’’ Natalia Gavrilita said.

The priorities of a new agreement with IMF refer to the combating of corruption and the rule of law state. ‘’The independent assessments, including the studies carried out by IMF, show the bad enforcement of the law and the corruption in the judicial and administrative system have become the biggest impediments to the economic growth, providing sustainable investments and improving the people’s living standards. Therefore, we committed to make extraordinary evaluation in the justice sector and to enhance the responsibility of the law enforcement bodies,’’ the prime minister noted.   

According to the PM, for a short term, the budgetary and fiscal policy will be focused on the attenuation of the impact of the COVID-19 pandemic and the current crisis in the energy sector. At the same time, we will further finance the programmes already launched by the Moldovan governance, including the increase in pensions and allowances, subsidization of salaries for maintaining jobs and compensation for the reduced economic activity. At the same time, we will finance new programmes on compensation of households and economic agents for the increase in the price for energy, the prime minister said. The government will continue working to improve the salary payment system, including the one on the wages in the public sector.    

On the medium term, the cabinet’s efforts will be focused on providing investments in infrastructure – roads, water and sewerage systems, energy interconnections and energy efficiency – and on programmes of improving the business environment, education and health services.

„We will continue to fight with the contraband and tax evasion, through actions of improving the fiscal and customs administration and will make exercises of rationalizing the expenses, in order to make sure that the budget money is used for the benefit of the citizens. We will improve the management of the state enterprises. We will evaluate the financial situations of the enterprises and will strengthen their administrative boards, so that they bring economic value added. We will continue to make proper order in public procurements and will ensure transparency in combating corruption in this sector,’’ the prime minister added.    

The approval of the agreement by the IMF leadership and the board of executive directors is scheduled for next December.   

Photo: Government