Moldova Will Receive $558 Million in Financial Assistance from the IMF

Moldova Will Receive $558 Million in Financial Assistance from the IMF
28 July 2020 | 15:01

The International Monetary Fund (IMF) staff and the Moldovan authorities have reached a staff-level agreement on an economic reform program to be supported by a three-year Extended Credit Facility and Extended Fund Facility (ECF/EFF) arrangements. This would allow Moldova to access about $558 million of financial assistance. The new program will build on progress made under the previous program and strive to support Moldova’s post-pandemic recovery, and advance ambitious institutional reforms.

The IMF mission, led by Ruben Atoyan, held discussions remotely from the IMF Headquarters in Washington, D.C. with the Moldovan authorities during July 7-24, 2020 on an IMF-supported economic program.

“IMF staff and the Moldovan authorities have reached staff-level agreement on an economic reform program to be supported by three-year Extended Credit Facility and Extended Fund Facility (ECF/EFF) arrangements. Access under this arrangement is proposed to be set at SDR 400 million (232 percent of Moldova’s quota in the Fund and about US$ 558 million). 

The staff-level agreement is subject to approval by IMF Management and the Executive Board. Considerations of the new program by the Executive Board is expected in September, subject to the authorities’ implementation of a number of prior actions, including in areas of the central bank independence, financial sector oversight, and fiscal transparency,” stated Atoyan in a statement issued at the end of the consultations.  

According to the same statement, the new ECF/EFF arrangements will help maintain macroeconomic stability, provide an anchor for authorities’ policies to support the post-pandemic recovery, and catalyze external financing from other donors. Moreover, the new arrangement will also strive to advance ambitious institutional reforms aimed at tackling widespread vulnerabilities in areas of fiscal governance, non-bank financial sector oversight, market regulation, anti-corruption, and rule of law.

The IMF mission mentioned that an independent central bank helps macroeconomic stability, supports investor confidence, and protects the financial system—all crucial preconditions for inclusive and sustainable growth. The IMF mission added that it is in the interest of Moldova to preserve the independence of the National Bank and it is also a critical requirement under the new IMF-supported program.

In April 2020, the National Bank received a $235 million loan from the IMF.  

AUTHOR MAIL

 Subscribee

2020 Top for ZdG: The Most-Read Investigations, Reports, and Interviews

In 2020, the website www.zdg.md hosted the most readers in its history: 5 million. The news, surveys, interviews, and reports of ZdG journalists were read, distributed, and discussed both online and in many loc…
2020 Top for ZdG: The Most-Read Investigations, Reports, and Interviews

President Sandu Withdrew a Member from the Commission that will Appoint a Judge to the ECHR from Moldova

Last week President of Moldova, Maia Sandu withdrew Pavel Abraham from the Commission for the selection of candidates for the position of judge at the European Court of Human Rights (ECHR). As a follow-up, the…
President Sandu Withdrew a Member from the Commission that will Appoint a Judge to the ECHR from Moldova

Letters From Our Readers

Dumitru Cernea is 86 years old. He dedicated 57 years of his life to the work of an engineer. He is now retired and currently lives in Chișinău. He is one of the 10,000 subscribers of Ziarul de Gardă. One day,…
Letters From Our Readers

Maia Sandu Meets with the Head of the OSCE Mission to Moldova, Claus Neukirch

President Maia Sandu had a meeting with the head of the OSCE Mission to Moldova, Claus Neukirch. The officials discussed several issues, in particular, the settlement of the Transnistrian conflict. President Ma…
Maia Sandu Meets with the Head of the OSCE Mission to Moldova, Claus Neukirch

OP-ED: Are Russian Troops on the Nistru River a Problem for Moldova?

Moscow cannot forgive President Maia Sandu’s statement on the need to withdraw Russian troops from the breakaway Transnistria region, made right after her election win. The subject is periodically resumed…
OP-ED: Are Russian Troops on the Nistru River a Problem for Moldova?

Moldova’s President Meets the President of the Ukrainian Parliament and the Ukrainian Prime Minister

After the meeting with the president, Volodymyr Zelenskyi, Maia Sandu, also had a meeting with the president of the Ukrainian parliament, Dmytro Razumkov, and a separate meeting with the Ukrainian prime-ministe…
Moldova’s President Meets the President of the Ukrainian Parliament and the Ukrainian Prime Minister