Moldovan government has approved draft laws on raising $438.68 million from the IMF under a new program of external state loans to finance the state budget.
According to the Ministry of Finance, in particular, within the new 40-month program approved by the International Monetary Fund with a total volume of payments of about $558.3 million, about $439 million will be attracted in external state loans to finance the state budget. In particular, within the ECF mechanism to finance the budget needs $292.48 million will be received, which will be repaid in 12 equal tranches after 4.5 years from each payment made from the loan account. The loan maturity is 10 years. A floating interest rate will apply, which as of December 20 is 1.05% per annum. The service fee will be 0.5% of the amount paid, and the commitment fee - 0.3%. At the same time, $146.2 million will be allocated under the EFF mechanism, which will be returned in 10 equal tranches after 5.5 years from each payment made from the loan account. The interest rate on the concerned loan will be set every 2 years and will be equal to 0% until 2023. As InfoMarket agency earlier reported, on December 20, the IMF Executive Board approved Moldova's request for entering into an agreement on a program of economic reforms financed through ECF (Extended Credit Facility) and EFF (Extended Fund Facility). Following the approval of the authorities' request, Moldova got access to a tranche of about $79.8 million, which will be disbursed by the end of this year. The total amount of disbursements under the 40-month program will be about $558.3 million. The new IMF program aims to support Moldova's recovery from COVID-19, meet urgent development needs and strengthen its institutional framework. Thus, the structural reforms will aim at strengthening the rule of law, combating corruption and strengthening tax administration, which will contribute to a fast and sustainable increase in Moldova's revenues. Key reforms agreed with the IMF relate to enhancing transparency and accountability, improving the predictability of public policies, consolidating financial institutions and encouraging competition. IMF loans will be used to finance budget needs. Priority expenditures will include expenditures on roads, the energy sector, water supply, efficient investments in health, education and job creation. // 23.12.2021 – InfoMarket
