Moldovan government, IMF reach expert-level agreement on increase in financing

Chisinau, 13 April /MOLDPRES/ - The International Monetary Fund (IMF) has reached an expert-level agreement with Moldova, under which, at a request by the Chisinau authorities, increase in the financing for Moldova will be recommended, the government’s communication and protocol department has reported.    

The additional financing will be used for covering the increased budgetary spending, for programmes on backing entrepreneurs, for investments in energy efficiency projects, as well as to cope with the increase in prices for energy resources and food products on international markets. Also, the extension of the financing by IMF will contribute to the attenuation of risks for a short term and will make available the resources necessary for the covering the urgent humanitarian, social and economic expenses, serving, at the same time, as a catalyst for financing on behalf of other donors.   

The financial support provided to Moldova within the programme supported within the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF) will be increased by about 267 million dollars. 

The decision on increasing the access to financing was taken following the discussion held on 4-11 April between the IMF team and Moldova’s authorities. At the end of the IMF’s mission, its head, Ruben Atoyan said that, although the circumstances had been complicated and the war significantly hit Moldova’s economy, the authorities managed to fulfill their commitments taken in the programme for late March, including as regards the fighting against corruption and ensuring the supremacy of law, budgetary governance, supervision of the financial sector and  reformation of the framework of regulation of the state enterprises’   sector.    

The agreement reached by the sides is scheduled to be approved by the IMF Board of Directors, which plans to consider the request on the increase of the programme in next May. The first disbursement within the increased programme, worth 149 million dollars, will be made immediately after the completion of the first assessment of the programme’s implementation and will be allocated for budgetary support.