The IMF will allocate $800 million to Moldova under the current program and is ready to provide it with additional support through a new mechanism.
Director of the IMF European Department, Alfred Kammer stated this in an interview with the Moldovan media. He reminded that Moldova has a very ambitious reform agenda supported by the International Monetary Fund and the country has made significant progress in its implementation. Alfred Kammer noted that last year the IMF focused on supporting the government in overcoming crises, first in the context of the pandemic and subsequently in the context of energy security risks. "I think that together we have succeeded in helping Moldova and protecting the Moldovan population. At the same time, progress has been made in the implementation of long-term structural reforms, so important for accelerating Moldova's development and improving the living conditions of the population. Along with the government, we have focused on the reform of the state-owned enterprise sector, as well as on anti-corruption efforts, fiscal and financial management. All necessary measures have mostly been taken on time and successfully implemented. I have to say that we have a strong partnership with Moldova to promote these reforms," Alfred Kammer said. According to him, these reforms are aimed at creating an environment and structure, in which the private sector may really become an engine of economic growth. Alfred Kammer reminded that in April 2020, the IMF offered $235 million to Moldova. The IMF offered Moldova $235 million in support in the fight against the COVID-19 pandemic. Subsequently, in September 2021, the Fund provided $236 million to the Moldovan authorities. "In addition, we support the authorities' four-year program, which provides a total financial package of about $800 million. I believe that these financial commitments are very important to ensure the country's development and crisis management. The government has properly used the corresponding funds, which represent a significant contribution to covering Moldova's financial needs," said the director of the IMF European Department. He drew attention to the fact that when the Fund offers a program, this fact helps form a common basis for the assistance provided by all donors. The IMF acts as a catalyst for other donor interventions. "In 2022 alone, the donor community has allocated more than $400 million to support the country's government and population to keep Moldova moving forward on the road to development. But our assistance does not end there. Now, at the request of the President of Moldova, we are discussing the possibility of providing support through a new mechanism that would focus on all issues related to climate change. Climate change is an important issue at the global level, and a very important problem for Moldova namely because of the consequences it may have on the economy, especially on agriculture," Alfred Kammer said. According to him, it is extremely important that the authorities are fully involved, and the Fund will support them directly in terms of creating the necessary framework for adaptation, for overcoming crises, because ultimately most of the investments made anywhere to ensure the transition to a green economy and address climate change must come from the private sector, and these investments must be much larger than public investments. "We need a structure that allows the private sector to make these investments, which means we need to provide certainty for the future, certainty of fairness and stability that allows economic agents to act. Along with the Moldovan government, we are now analyzing the possibility of providing financing through this special mechanism, which would complement the current program implemented by the authorities with IMF support", said the director of the IMF European Department. // 13.03.2023 – InfoMarket
