Moldova and the IMF have reached an agreement on the second review of the financing program, which will unlock a new tranche of $27 million.
The total amount of funds provided to our country under the IMF-supported program will be about $287 million, the International Monetary Fund said. As it was reported, the IMF mission led by Ruben Atoyan held discussions on the second review of Moldova's IMF-financed program through the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) in Chisinau from October 31 to November 29. Following the discussions, Ruben Atoyan said the Moldovan authorities and the IMF mission reached an agreement at the expert level on the economic policies needed to complete the second review of the program. The agreement will be approved by the IMF Executive Board, which will consider the request of the Moldovan authorities in January 2023. Upon the review, Moldova will receive approximately $27 million, which will bring the total amount of provided funds within the program to approximately $287 million. Ruben Atoyan welcomed the Moldovan authorities' resoluteness in implementing the program and their firm commitment to promote the ambitious reform program, focused on improving the public administration, despite the unprecedented difficulties. According to him, the authorities have met all the criteria of the program implementation and the structural benchmark for state investment management. Good progress has been made on the structural benchmark aimed at strengthening oversight over state-owned enterprises, while efforts to strengthen the institutional autonomy and governance of the National Bank of Moldova are moving forward, following extensive consultations with IMF experts. As InfoMarket agency earlier reported, the 40-month program was approved by the IMF in December 2021 and in May 2022, the total amount of lending was increased to $826 million, of which $258 million have already been transferred. ECF financing has a zero interest rate with a grace period of 5.5 years and a final maturity of 10 years, while EFF financing has an interest rate equal to the SDR base rate, a maturity of 10 years and a grace period of 4.5 years. // 01.12.2022 - InfoMarket
