Government initiates negotiations on new program with IMF

The negotiations on a new program with the IMF were initiated on July 7 by Prime Minister Ion Chicu, who had a meeting with the IMF mission led by Ruben Atoyan, IPN reports, quoting the Government’s press service.

During two weeks, the IMF mission will hold discussions with the Moldovan authorities on a new three-year program (2020-2023) focused on a comprehensive set of policies that would help maintain macroeconomic stability, support post-pandemic recovery, advance governance and institutional reforms, and mobilize external financing.

The financial support rises to US$550 million. The largest part of the sum will be used in budget support, while a small part will go to supplement the foreign exchange reserves.

According to the sides, the political instability in Moldova is the only imminent risk that can prevent the fulfillment of the conditions imposed by the IMF. The mission will thus engage some of the political forces from Parliament in the discussions. In September, the memorandum is to be discussed by the IMF Board.

Premier Chicu said the financial support from the IMF is essential for Moldova whose economy was clearly affected by the COVID-19 pandemic. “We are ready to discuss and fulfill several important points of the financing agreement and to continue to cooperate, especially because the last program with the IMF was implemented successfully,” he stated.

In April 2020, the IMF Executive Board approved US$235 million in emergency assistance to Moldova to address the COVID-19 pandemic. In March, the Government asked the IMF to help Moldova overcome the consequences of the economic crisis generated by the pandemic.

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