The NBM welcomed the positive conclusions of the IMF after the completion of the reviews of the existing financing programs of Moldova
As specified by the National Bank of Moldova (NBM), in particular, the Executive Board of the IMF completed on December 17 the 6th review under the program with Moldova, supported by the Extended Credit Facility (ECF) and Extended Fund Facility (EFF), and the 2nd review of the program supported by the Resilience and Sustainability Facility (RSF), which will allow the Moldovan authorities to receive from the Fund new financing of 122.2 million special drawing rights (about $162.6 million) under both programs. These funds can be used to support the budget. At the same time, the total payments to Moldova within the current IMF financing programs reach about $810.2 million. According to the IMF statement, this decision reflects Moldova's progress in stabilizing the economy and implementing important structural reforms. According to the IMF experts, since October 2023, the inflation rate in Moldova remains within the target corridor of 5% ±1.5 p.p., set by the NBM, which emphasizes the effectiveness of the policy and contributes to the maintenance of a predictable economic environment. The IMF said that the authorities have implemented measures related to financial inclusion, the insurance sector and state-owned enterprises, as well as submitted to the Parliament packages of legislative changes aimed at strengthening the autonomy and governance mechanisms of the National Bank of Moldova. Following the IMF Executive Board meeting, IMF Deputy Managing Director Kenji Okamura noted that while Moldova's economic growth recovery has accelerated in 2024 and is expected to continue in 2025, downside risks remain. The authorities should pursue prudent policies and maintain adequate levels of reserves, as well as have robust contingency plans in place, including in the energy sector, while at the same time promoting investment and reforms favorable to economic growth. The EU accession process will also play a favorable role in this regard. Moldova's current Financing Program was approved by the IMF on December 21, 2021. It provides for 2 lending instruments: the Extended Fund Facility (EFF) and the Extended Credit Facility for a total amount of $795.72 million (SDR 594.26 million) and includes 8 assessments. The $169 million (SDR 129.37 million) Resilience and Sustainability Facility (RSF) will support national authorities' efforts to address climate challenges, green energy transition and sustainable development. // 19.12.2024 - InfoMarket.
