​ECONOMY MINISTER AND IMF EXPERTS DISCUSS FULFILLMENT OF FINANCIAL ASSISTANCE CONDITIONS

The process of fulfilling liabilities, undertook by Moldova at signing financial assistance program with the IMF became the topic of discussion at the Thursday’s meeting of Deputy Premier, Minister of Economy Octavian Calmic with the IMF assessment mission, which is currently visiting Chisinau.

According to the Ministry, the stakeholders exchanged opinions about macroeconomic trends in economy in recent time, reforms in energy sector, privatization program.

Deputy Premier informed guests about the situation in economy and about progress, achieved in the process of implementing the IMF program. He also presented macroeconomic report for 2017.

As Infotag has already reported, the three-year IMF program of cooperation with Moldova implies financial assistance worth US$179 million, around US$35 million of which already arrived to Moldova. The remaining sum will be allocated in stages depending on five half-year overviews. Two-thirds of the credit is provided by means of the Extended Credit Facility (ECF) that implies zero interest rate until end-2018, 5.5-year grace period in payments and 10-year repayment period. The rest of the sum is allocated by means of the Extended Fund Facility (EFF), which implies 1.3% interest rate, repayment period of 10 years and 4.5-year grace period.

The aim of the new EFF/ECF mechanism of financing for Moldova is to quickly improve the situation that concerns management in financial sector and control over it. The initiated measures will support the authorities’ efforts in combating corruption, ensuring sustainable policy in energy sector, budget and tax reform program, which in particular concerns the raising of revenues, improving expenditure efficiency and budget and tax risk reduction.

The previous three-year program of cooperation between Moldova and the Fund started on January 29, 2010 and finished in April 2013. It provided financial assistance worth US$570 million, but Moldova received only around US$490 million. The last tranche has not been transferred due to the non-fulfillment by Moldovan authorities of a number of IMF recommendations.