IMF welcomes Moldova's progress in strengthening energy security and diversifying energy supply sources
This was reported by experts of the International Monetary Fund led by the new head of the mission Alina Iancu at a meeting with Energy Minister Victor Parlicov. As reported by the Ministry of Energy, IMF experts welcomed Moldova's progress in strengthening energy security, increasing energy sustainability and diversifying energy supply sources. The parties also discussed possible scenarios that can be implemented after the expiration of the contract for the transit of natural gas through Ukraine on January 1, 2025. Victor Parlicov emphasized that these scenarios are included in the Action Plan for preparation for the 2024-2025 heating season, and assured that Moldova is ready to guarantee uninterrupted supplies of electricity and natural gas to end consumers. At the same time, IMF experts confirmed the full support of the fund for the Moldovan economy, as well as the IMF's readiness to support the further implementation of reforms. The IMF mission led by Alina Iancu is in Chisinau from 1 to 11 October. IMF experts are holding discussions with the Moldovan authorities in the context of the 6th review of the ECF/EFF program for Moldova, financed by the IMF through the Extended Credit Facility (ECF) and the Extended Credit Facility (EFF), and the 2nd review of the program financed by the IMF through the Resilience and Sustainability Facility (RSF). As InfoMarket reported earlier, 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), of which about $608 million (449.1 million SDRs) have already been disbursed. In addition, the RSF program was approved in December 2023, with approximately $175 million (129.4 million SDR) of financing, of which approximately $44 million (32.3 million SDR) has already been disbursed. The ECF financing bears zero interest, has a grace period of 5.5 years, and has a final maturity of 10 years, while the EFF financing bears an interest rate equal to the SDR base rate, has a maturity of 10 years, and has a grace period of 4.5 years. The RSF financing has a maturity of 20 years and a grace period of 10.5 years during which the principal amount of the loan is not repaid. // 02.10.2024 – InfoMarket.
