Evolution of macroeconomic indicators confirms the right direction for Moldova's economic recovery - IMF
Experts of the International Monetary Fund Mission, led by Alina Iancu, being on a visit to Chisinau from October 1 to 11, stated this at a meeting with Prime Minister Dorin Recean. The sides discussed the current economic processes, macroeconomic prospects and risks, as well as the progress in the fulfillment of the commitments under the program. The IMF mission is holding discussions with the Moldovan authorities in the context of the 6th review of Moldova's ECF/EFF program, financed by the IMF through the Extended Credit Facility (ECF) and the Extended Fund Facility (EFF), and the 2nd review of the program financed by the IMF through the Resilience and Sustainability Facility (RSF). Prime Minister emphasized that the Moldovan government is currently pursuing two main objectives: economic recovery and peace and security. “We want to increase the confidence of consumers and investors in our economy, which has suffered in the current regional conditions,” Dorin Recean said. The interlocutors also talked about the reform of the justice system and the fight against corruption, the situation in the energy sector, the integration of the Transnistrian region into Moldova's economic space, the consolidation of the financial and banking sector, focusing on the framework of the National Bank of Moldova's activity. Dorin Recean said that the justice reform is the basis of all other reforms, which require a systemic approach. “It is important that the system finds honest people and that the institutions on the sites are sustainable, independent, but at the same time not isolated,” he emphasized. The IMF mission noted that recent macroeconomic developments indicate the right direction for economic recovery. The Fund's experts highly appreciated the detailed information provided by the authorities and assured of the IMF's full support to the national economy and continuation of reforms. As InfoMarket previously reported, the 40-month ECF/EFF program was approved by the IMF in December 2021, and in May 2022 the total lending was increased to about $805 million (594.3 million Special Drawing Rights/SDR), of which about $608 million (SDR 449.1 million) has already been disbursed. In addition, the RSF program was approved in December 2023, with funding of approximately $175 million (SDR 129.4 million), of which approximately $44 million (SDR 32.3 million) has already been transferred. The ECF financing is at a zero interest rate with a grace period of 5.5 years and a final maturity of 10 years, while the EFF financing provides for an interest rate equal to the SDR base rate, a maturity of 10 years and a grace period of 4.5 years. Financing through RSF provides for a maturity of 20 years and a grace period of 10.5 years during which the principal amount of the loan is not repaid. // 01.10.2024 – InfoMarket
