Parliament approved changes to IMF program in first reading

12:17 | 02.06.2022 Category: Economic

Chisinau, June 2 / MOLDPRES /- Parliament approved today, in its first reading, amendments to two laws on attracting foreign state loans from the International Monetary Fund (IMF), as a result of increased financial assistance to our country.

On May 11, 2022, the IMF Executive Board decided to increase from 400 million Special Drawing Rights (SDRs) to SDR 594.3 million (about $ 795.72 million) in loans under the Program of economic reforms. The program is supported by the Extended Lending Mechanism (ECF) and the Extended Financing Mechanism (EFF).

The two loans will be used to finance the needs of the state budget. The financial assistance will be used to cover urgent balance-of-payments financing needs arising from negative shocks, including the war in Ukraine and international sanctions imposed on the Russian Federation and the Republic of Belarus. At the same time, the provision of financial support from the IMF will catalyze the provision of financial assistance by the international community.

The documents do not imply repayment obligations - each IMF member country can use SDR from its share, according to domestic requirements. SDRs are a reserve asset created by the International Monetary Fund in order to supplement the existing reserve assets of IMF Member States.

Photo: Parliament

Any material published on the website of the Public Institution ’’A.I.S. Moldpres’’ (Moldpres News Agency) is intellectual peoperty of the Agency, protected by the copyright. The taking over or/and use of these materials will be made only with the Agency’s agreement and with compulsory reference to source.