IMF TECHNICAL MISSION TO COME TO MOLDOVA IN SEPTEMBER

No visit of the IMF Assessment Mission to Moldova is planned till the end of 2018, Parliament Chairman Andrian Candu stated at the news conference he convened on Wednesday to draw up the results of the parliamentary Spring-Summer Session that ended last week.

In his words, in the framework of the current 3-year cooperation program [November 2016 through November 2019, with a budget of US$178.7 million] Moldova may receive next tranche approximately next spring i.e. after an ordinary parliamentary election and upon formation of a new government.

Reviewing the Filip Government’s and the National Bank’s relationship with the International Monetary Fund, Andrian Candu said that an IMF technical mission is expected to come to Chisinau in September.

Candu said the IMF experts will analyze the current macro-financial situation and realization of the tax and budget policy and the monetary and credit policy. One of the mission’s objectives will be to agree with the Moldovan Government upon the country’s budgetary and tax policy for the next year and upon 2019 State Budget parameters.

“The IMF experts will not be discussing the Moldovan authorities’ policy or actions for the subsequent period because both the incumbent Government and Parliament are completing their mandates. The discussion will be continued next spring – after the parliamentary election and approval of new Government. At any rate, we will remain partners because we fulfill the program of cooperation with the IMF”, stressed Andrian Candu.

As was already reported by Infotag, last June 29 the IMF Executive Board approved the results of the Third Assessment Mission that analyzed the realization by the Government and the National Bank of the conditions of the 3-year cooperation program concluded with the IMF. Immediately after that approval, the IMF furnished for Moldova an ordinary US$22.5-million tranche, which came onto the National Bank’s account on the same day. Delighted Prime Minister Pavel Filip stated then: “I thank my colleagues from the Moldovan Government, Parliament and National Bank for the job they did and for their high professionalism. I am grateful to the International Monetary Fund for the cooperation we have with it”.

However, last week the International Monetary Fund, the World Bank and other development partners severely criticized the Moldovan Government for launching a new tax reform without its prior coordination with international financial institutions.

Infotag's dossier: The Republic of Moldova signed the Memorandum with the International Monetary Fund on November 7, 2016. This three-year agreement is financed by means of two credit instruments – the Extended Fund Facility (EFF) and the Extended Credit Facility (ECF). They are intended for backing the program of economic and financial reforms in Moldova. In the framework of this agreement, Moldova has received an access to IMF resources worth 129.4 million Special Drawing Rights (SDR), which is equivalent to nearly US$178.7 million. From that sum, the Government and the National Bank of Moldova have already received over US$80 million.