Moldova secures preliminary loan agreement of $ 564 million with IMF
CHISINAU (Moldova), October 21 (SeeNews) – Moldova has reached a preliminary agreement with the International Monetary Fund (IMF) for a financing program of 564 million dollars (484 million euros) with a duration of 40 months , Prime Minister Natalia Gavrilita announced Thursday. .
Moldova hopes to receive the first tranche of the loan of $ 81 million under the new financing program by the end of the year, Gavrilita said at a joint press conference with the IMF representative for the Moldova, Rodgers Chawani, broadcast live on the government’s social media page.
The approval of the deal by the IMF’s executive board is expected in December.
“An IMF-approved program is a catalyst for new financing from other development partners, brings more investor confidence and gives the government more freedom to develop social, economic and infrastructure support programs,” he said. the Moldovan Prime Minister said, adding that the new agreement with the IMF will help fight corruption and strengthen the rule of law.
In the short term, Moldova’s fiscal and fiscal policy will focus on mitigating the impact of the Covid-19 pandemic and the current crisis in the energy sector, while in the medium term, Government efforts will focus on securing investments in infrastructure and on programs to improve the business environment, education and health services.
In December, the IMF’s executive board announced that it was postponing approval of the financial agreement with Moldova reached at the staff level in July 2020. Moldova was to receive $ 558 million for the implementation of ‘an economic reform program as part of the agreement.
The IMF decision came after the Moldovan parliament repealed the law under which the government repays loans granted by Moldova’s central bank to the three local banks involved in a billion dollar fraud scheme in 2014. However, the law was partially suppressed by the new Moldovan parliament. majority pro-European, elected in July.
Moldova’s previous $ 572 million loan deal with the IMF expired in March last year.
($ = 0.8588 euro)