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Moldovan government began negotiations with the IMF on a new 3-year financing program with a total value of $550 million.

Moldovan government began negotiations with the IMF on a new 3-year financing program with a total value of $550 million.

The press service of the Cabinet reported this, noting that Prime Minister Ion Chicu started negotiations on a new program with the International Monetary Fund during an online meeting with an IMF expert group led by Ruben Atoyan, in which Octavian Armasu, President of the National Bank of Moldova, also took part. According to Ion Chicu, IMF financial assistance is very significant for Moldova, whose economy was hit hard by COVID-19. “We are ready to discuss and implement a number of important topics provided for in the financing agreement, and continue cooperation. Moreover, the last program with the IMF was successfully completed,” the Prime Minister said. Within 2 weeks, the IMF mission will negotiate with the Moldovan authorities on a new program designed for the next 3 year (2020–2023). It will be based on actions to support the economy, promote effective tax and financial management, strengthen the rule of law, anti-corruption measures, etc. Financial assistance will amount to $550 million. The largest part of the amount will go to support the budget, and the smaller part - to replenish foreign exchange reserves. The meeting also discussed political instability in Moldova, which is the only inevitable risk that could hinder the fulfillment of the conditions set by the IMF. Thus, the mission will draw some political forces of the parliament into discussion. In September, the IMF will discuss the memorandum. Let us recall that in April the IMF Board of Directors approved an emergency $235 million loan for Moldova, which was provided to support the budget. In March, the government asked the IMF to support Moldova in overcoming the effects of the economic crisis caused by the pandemic. //08.07.2020 - InfoMarket.

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