IMF Conditioning the Further Financing of Moldova on
Promoting Specific Reforms
Moldova has to ensure full independence for the National Bank of Moldova (BNM)
over the monetary policy, and the government shall not be credited directly by
BNM. These are some of the requirements made by the International Monetary
Fund (IMF) so that RM could benefit from the whole credit offered by IMF.
IMF Resident Representative in Chisinau, Johan Mathisen mentioned on
Friday, 19 May, at ta press conference that according to the new Agreement
concluded with RM, the government shall transfer its deposits of BNM
commercial banks, except the accounts of the National Company of Medical
Insurances, National House of Social Insurances, special and stock funds. IMF
also requires efficient management of public patrimony, liquidation of
Creditors’ Council by transmitting its functions to other fiscal bodies,
modernizing the financial sector, improving the business environment etc.
„All these objectives will be obtained only if along with the Macroeconomic
Program approved by IMF, there will be implemented reforms in other fields as
well, the judicial systems, agriculture, fight against corruption and others,”
the official mentioned.
Mathisen highlighted that the Program with IMF allows RM to launch itself
on a sustainable increasing economic path, which will be based on local
investments, as well as foreign ones. According to him, this has already
certain outcomes. Due to approval of the Program, the Club of Paris accepted
re-scheduling foreign debts of Moldova, providing the possibility to use about
100 million dollars not for paying the external debt, but for satisfying the
most urgent needs of the country.
IMF Executive Board approved, on 5 May 2006, a new Agreement with Moldova,
for a three-year term, on the base of Poverty Reduction and Economic Growth
Mechanism, about 118,2 million dollars. The first amount of 16,9 million
dollars of IMF credit was provided on 10 May and will be used for keeping the
stability of the national currency and payment balance, as well as for crisis
situations. A part of the credit will also be used for implementing the goals
of the Economic Growth and Poverty Reduction Strategy (SCERS).
Info-Prim Neo, May 19, 2006