Moldova’s Agreement With the IMF is at a Standstill. What is the Position of the Minister of Finances?

Moldova’s Agreement With the IMF is at a Standstill. What is the Position of the Minister of Finances?
(AP Photo/Cliff Owen)
29 September 2020 | 17:04

The agreement of the International Monetary Fund (IMF) and the Chisinau authorities on a three years’ credit line of $558 million for Moldova was not on the Board’s list of the meeting last week. In this context, the vice-president of the Parliament, Alexandru Slusari, accuses the Government of leaving “almost everything behind and managing only the directions related to Dodon’s electorate.” The Minister of Finance, Sergiu Pușcuța, is confident that the Government will sign a memorandum with the IMF, regardless of the Government meeting all the preconditions submitted by the Fund.

The IMF Board of Directors did not discuss approving assistance to Moldova, and the authorities also risk losing another €50 million from the European Union with it, says Alexandru Slusari.

“For several months, the Government has promised us that on September 30, the IMF board will adopt a new program for Moldova, and the first money from the over $100 million will enter the treasury accounts as budget support. Here I learned from my reliable sources that the IMF did not include our country’s subject in the September 30 agenda. This means that the €50 million EU assistance is not coming either,” declared deputy Suslari.

“The executive is obliged to come up with explanations. This money was recently reserved in the state budget to cover the deficit – almost 3 billion lei. It is becoming increasingly clear that this cabinet of ministers has so far abandoned almost everything and is only managing the activities related to Dodon’s election, waiting for November 1. The pandemic, the dizzying growth of infections, the drought, the budget deficit – all these are of no interest to the Chicu Government. I deeply regret that many deputies too late understood the importance of the dismissal of this Executive, which is ready to sacrifice the whole country for the sake of a man, obsessed with power and money from illegal proceeds,” shows Alexandru Slusari’s message.

Minister of Finance: As far as I understand, the IMF Board did not discuss the case of Moldova

Contacted by ZdG, the Minister of Finance, Sergiu Pușcuța, did not want to discuss politicians’ statements. However, he was optimistic about a Moldova-IMF memorandum. Even if the minister declared the collaboration would start in September, he believes it will prolong until the IMF’s preconditions are fulfilled.

“If strictly necessary, I can also check with colleagues from the Fund. The negotiations were completed at the end of July – beginning of August, after which we had a technical mission to assess governance. So, the implementation of this agreement is already going, although the IFM Board does not yet approve it,” stated the Minister of Finance.

Sergiu Pușcuța declared that it only depends on the IMF’s Board to examine Moldova’s case. 

A week ago, the Romanian ambassador to Chisinau, Daniel Ioniţă, declared on a TV show that no signed agreement with the IMF, scheduled for approval until the end of September, is a red flag for Moldova’s budget.

On July 28, the Government announced an agreement with the International Monetary Fund; however, the Moldovan authorities found components such as strengthening the rule of law and fighting corruption in the memorandum unexpected particularities.

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