Moldova to request review of program with IMF

Chisinau, March 11 / MOLDPRES /- Moldovan government has requested the program be revised with the International Monetary Fund so that it reflects the new economic context and ensures a significant increase in funding from external partners, especially in the form of direct non-reimbursable budget support. The announcement was made today by Prime Minister Natalia Gavriliță during a joint conference with Head of the International Monetary Fund for Moldova Ruben Atoyan.

The Prime Minister noted that during the talks, the Government had requested a review of the program with the IMF to increase funding from external partners, especially in the form of direct non-reimbursable budget support.

"The war in Ukraine and the sanctions imposed on the Russian Federation have complex consequences for the global economy, we are talking in particular about economic fragmentation and disruption of trade and value chains, as well as high and volatile prices for energy and food resources. Our country was still affected by the price crisis and the economic crisis. However, the basic economic indicators of the Republic of Moldova are strong and the budget has a degree of reserve and flexibility. Thus, we only need a revision of the Program and not emergency funding. The government needs to focus on supporting the population to cope with the price crisis, and next week we will come up with clarifications and decisions regarding the indexation of the pension from April 1 this year. Also, this week we increased the minimum wage in the real sector from 2900 lei to 3500 lei. And we will continue with policies to improve or maintain the standard of living ", said the prime minister.

Gavrilița specified that in the next period targeted measures will be implemented in the context of the energy crisis, but also measures to ensure food security and facilitate trade with the EU.

For his part, Ruben Atoyan said that the war in Ukraine had disrupted the situation in the region, and that increased prices would put additional pressure on the authorities. He said that the Republic of Moldova has high budgetary reserves, which offer a lot of room for maneuver and which put the country in a position to create a strong policy package. He added that the IMF is ready to support the Republic of Moldova further.

The Prime Minister and the head of the International Monetary Fund mission did not provide figures on the IMF program, but said the amounts would vary depending on the policies agreed upon.