IMF Staff Concludes Consultations with Moldova on a New Economic Program
July 27, 2020
End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after remote discussions with the authorities. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision.
- IMF staff and the Moldovan authorities have reached staff-level agreement on an economic reform program to be supported by three-year Extended Credit Facility and Extended Fund Facility (ECF/EFF) arrangements.
- It would allow Moldova to access about US$ 558 million of financial assistance.
- The new program will build on progress made under the previous program and strive to support Moldova’s post-pandemic recovery, and advance ambitious institutional reforms.
WASHINGTON, DC – An International Monetary Fund (IMF)
mission, led by Ruben Atoyan, held discussions remotely from the IMF
Headquarters in Washington, D.C. with the Moldovan authorities during July
7-24, 2020 on an IMF-supported economic program.
At the end of the consultations Mr. Atoyan issued the following statement:
“IMF staff and the Moldovan authorities have reached staff-level agreement
on an economic reform program to be supported by three-year Extended Credit
Facility and Extended Fund Facility (ECF/EFF) arrangements. Access under
this arrangement is proposed to be set at SDR 400 million (232 percent of
Moldova’s quota in the Fund and about US$ 558 million). The staff level
agreement is subject to approval by IMF Management and the Executive Board.
Considerations of the new program by the Executive Board is expected in
September, subject to the authorities’ implementation of a number of prior
actions, including in areas of the central bank independence, financial
sector oversight, and fiscal transparency.
“The new ECF/EFF arrangements will help maintain macroeconomic stability,
provide an anchor for authorities’ policies to support the post-pandemic
recovery, and catalyze external financing from other donors. Building on
progress made under the previous program, the new arrangement will also
strive to advance ambitious institutional reforms aimed at tackling
widespread vulnerabilities in areas of fiscal governance, non-bank
financial sector oversight, market regulation, anti-corruption, and rule of
“The governance reform of the National Bank of Moldova (NBM) supported by
the Fund and NBM’s performance during the previous program is an important
achievement for Moldova. The successful clean-up of the banking sector in
the aftermath of the major bank fraud is a credit to the supervisory work
of the NBM. Unequivocal commitment to the irreversibility of the banking
sector reforms is critical for the financial sector stability. An
independent central bank helps macroeconomic stability, supports investor
confidence, and protects the financial system—all crucial preconditions for
inclusive and sustainable growth. It is in the interest of Moldova to
preserve the independence of NBM and it is also a critical requirement
under the new IMF-supported program.”
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