​IMF MISSION TO ARRIVE TO MOLDOVA LATER TODAY

A mission of the International Monetary Fund, headed by Ruben Atoyan is coming to Chisinau on Wednesday with a two-week visit to analyze the recent economic events and the process of implementing the cooperation program, to evaluate the macroeconomic perspectives, as well as to discuss with the authorities the problems and risks the Moldovan economy is facing in mid-term perspective and solutions for these.

According to the IMF Office in Moldova, the mission will also hold discussions with Moldovan authorities on preparing for consultations on 2020 in accordance with the IMF Statute and for holding the 6th (the last) overview of the Moldovan program, financed by the Fund.

In the run-up to the visit, Prime Minister Ion Chicu stated that the Moldovan Government is interested in cooperation with the IMF and is not going to try to disrupt this cooperation.

According to him the social initiatives proposed by the Moldovan executive power, were included in the 2020 budget and fit within the set parameters.

“We continue discussions with the IMF, this is exactly the reason the IMF mission comes to Chisinau. Had we not had discussions and the desire to successfully complete the current program, they would have not come”, said Chicu in an interview to the Radio Free Europe.

However, he pointed at two main threats of relationship breakdown: IMF’s disagreement to raise investment into the Moldovan infrastructure and the Fund’s insistence to raise tariffs on gas for the population.

The three-year IMF-Moldova program, approved on November 7, 2016, implies around US$182 million of financial assistance, US$160 million of which have already been received. Two-thirds of the credit are allocated 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 provided by means of the Extended Fund Facility (EFF) which implies interest rate equal with the base rate of SDR (currently 1.7% per year), 10-year repayment period and 4.5-year grace period in payments.

In accordance with the IMF Statute, as a rule, bilateral consultations are annually conducted with all member countries. The IMF mission comes to the country for collecting economic and financial data and for discussing the economic progress and the conducted policies with authorities. After returning to the headquarters, a report is compiled, which is the main document, proposed to the Executive Council for consideration.