Moldova will Use 165.3 million of Special Drawing Rights, the Equivalent of 236 Million Dollars, Agreed with the International Monetary Fund

Moldova will Use 165.3 million of Special Drawing Rights, the Equivalent of 236 Million Dollars, Agreed with the International Monetary Fund
by
14 October 2021 | 15:01

Moldova will be able to use the 165.3 million Special Drawing Rights (SDRs), the equivalent of about 236 million dollars, agreed with the International Monetary Fund. The decision was approved by the Parliament on Thursday, October 14, in order to finance the budget deficit.

According to the document, the National Bank of Moldova will transfer to the Ministry of Finance the financial means under the established terms and conditions, based on an agreement to be concluded between the two institutions.

The SDR allocation provides liquid assets to member countries without any repayment or cancellation obligations. Thus, Member States do not have to fulfill any conditionality in order to receive their share of the SDR allocation. Respectively, each member country may use the SDR allocation according to domestic needs.

In accordance with International Monetary Fund procedures, each member country is to pay a quarterly interest and an annual fee. The SDR interest rate is floating and on September 20, 2021, it was 0.05%, and the annual commission rate is also floating and currently, it is about one-thousandth of a percentage.

The SDR allocation is a non-reimbursable source, and the expenses related to their service will be made from the state budget and will be provided in the draft rectification of the Budget Law for 2021.

On September 22, the project was approved by the Cabinet of Ministers. In August, representatives of the Government announced Moldova will benefit from 165.3 million SDRs (Special Drawing Rights), the equivalent of about 236 million dollars, from the International Monetary Fund. The decision was discussed during a meeting of Prime Minister Natalia Gavrilița with Rodgers Chawani, IMF Resident Representative in Moldova.

AUTHOR MAIL eng.zdg@gmail.com

 .

TOP: Five ZdG Investigations from 2021 that Led to Opening Criminal Cases

Several articles published by ZdG during 2021 have had an impact and led to opening criminal cases or sanctions. The investigation ”Concrete Instead of Trees in a Chișinău Forest” brought to the public’s…
TOP: Five ZdG Investigations from 2021 that Led to Opening Criminal Cases

INVESTIGATION: The Army from which Recruits Flee

“I left the unit out of fear. I joined the army to do military service and not to let someone mock me. (…) The superiors reacted aggressively. I learnt nothing from the military service: I made repa…
INVESTIGATION: The Army from which Recruits Flee

ZdG Interview with Maia Sandu, President of Moldova

“Fighting corruption is a very important process that we engage to complete; the country’s strategy, however, must focus on education.” A year after the inauguration of Maia Sandu as President…
ZdG Interview with Maia Sandu, President of Moldova

OPINION POLL: A Year with Maia Sandu: “I think she has to put Shor, Plahotniuc, Platon in prison and take all their fortunes and give them to the people.”

On December 24, 2020, Maia Sandu pronounced her inauguration oath of office as President of the Republic of Moldova: “I swear to give all my strength and skill to the prosperity of the Republic of Moldova, to r…
OPINION POLL: A Year with Maia Sandu: “I think she has to put Shor, Plahotniuc, Platon in prison and take all their fortunes and give them to the people.”

OPINION POLL: 2021 is Leaving. What Would We Take with Us into 2022?

We say goodbye to 2021- a year full of question marks. Knock on 2022. How will it find us? More peaceful, more optimistic, more hopeful, or tired of waiting? It will be warm in the house, there will be bread on…
OPINION POLL: 2021 is Leaving. What Would We Take with Us into 2022?

New US Ambassador to Moldova Kent Doyle Logsdon has taken the Oath of Office

The new US Ambassador to Moldova, Kent Doyle Logsdon, took the oath of office on Wednesday, December 28, in Washington DC. Ambassador Logsdon will soon arrive in Moldova to lead the Embassy team in further stre…
New US Ambassador to Moldova Kent Doyle Logsdon has taken the Oath of Office