Moldova to receive 96 million dollars on behalf of IMF

Chisinau, 27 April /MOLDPRES/ - The Executive Board of the International Monetary Fund (IMF) concluded the third review under the 40-month Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements[1] for the Republic of Moldova[2] This allows for the immediate disbursement of SDR 70.95 million (about US$96 million), usable for budget support.

According to IMF, ‘’Moldova’s economy contracted sharply in 2022, reflecting spillovers from the war; a modest recovery is expected in 2023. Inflation remains high but continues to decline rapidly. Fiscal policies are focusing on mitigating the impacts of the overlapping crises and supporting economic recovery. Risks to the energy sector have abated for now, reflecting authorities’ prudent use of contingency plans. Nevertheless, t he outlook remains subject to extreme uncertainty, primarily due to risks of further escalation of the war.’’

The Fund also said that ‘’ Moldova’s program implementation remains strong despite this challenging environment, notably with recent completion of important reforms.’’

IMF Deputy Director Kenji Okamura said that ‘’ Moldova remains in a precarious position due to overlapping crises. Russia’s war in Ukraine and its proximity to Moldova continue to fuel security concerns. The social fabric remains fragile and under pressure from high food and energy prices. In this context, the new government has emphasized its commitment to reforms, and program implementation remains strong despite the challenging environment.’’

Moldova’s total disbursements within the ECF/EFF arrangements amount to about US$371 million.