Moldova & IMF IMF Activities Publications Press Releases

Limba romana                                                                                                  Russian

13.05.2010 | 16:42

Prime Minister Vlad Filat and the head of the International Monetary Fund's Mission (IMF) for Moldova, Nikolay Gueorguiev, held a news conference today

The official unveils the conclusions of the IMF mission, on an assessment visit to Chisinau on 28 April - 3 May.

The prime minister said that the most important conclusion at the end of this mission is that Moldova passed from the stage of economic stabilisation to the one of economic re-launch, with a direct goal of improving the citizens' life.

"This was an aim assumed by the government which I have been leading since taking over the mandate," Vlad Filat said.

The prime minister said that Moldova is in a good situation, and this is the effect of the reforms implemented till present.

The prime minister stressed that the economic stability does not mean en immediate positive effect on the citizen's financial state, but the negative effects on the citizens would have been even more serious, if the economy was not stabilized. He thanked the foreign partners for the provided support, as well as the Moldovan citizens for the understanding proved on this period.

"Since early 2010 so far, Moldova's economic growth was better than anticipated, but the full recovery of the economy will be gradual. The exports and investments will lead to a short-term stimulation of the economic activity. The trade liberalisation reforms, a friendlier foreign situation and a better competitiveness will be further backed," Vlad Filat said.

Official data show that the improvement of the situation in terms of revenues led to the consolidation of the budgetary position. A good improvement of incomes in late 2009 and a cut of spending maintained the budget deficit at about 6.4per cent of the Gross Domestic products (GDP) in 2009. The budget revenues exceeded the scheduled figures in the first quarter of 2010, and additional fiscal incomes of 0.7 per cent of the GDP are forecast in 2010 compared with the programme signed with the IMF.

"While taking into account the positive prospects in terms of revenues, we will rectify the 2010 budget with a 5.4-per cent deficit of GDP against the initially planned 7 per cent," the prime minister said.

Referring to the programme with IMF, the prime minister said that it is being implemented in the agreed parameters. All the quantitative performance criteria and the scheduled index goals for late March 2010 were observed. The structural performance criteria agreed within the programme has also been carried out in line with the plan.

Vlad Filat reiterated that Moldova maintains its commitment to ensure the residents' well-being by reforms due to promote a lasting economic growth and poverty reduction.

"This commitment was shared and backed by our development partners at a meeting of the consultative group in Brussels in March 2010. In the next period, our programme will be focused on maintaining a balanced pace of budgetary and fiscal adjusting, keeping inflation under control and providing assistance to banks in resuming the economy's crediting, consolidating the financial stability by increasing the ability to supervise and plan in crisis situations, restructuring the energy sector and applying deep structural reforms which will support Moldova's re-orientation towards an economy based on export," the prime minister said.

At the same time, the prime minister said that Moldova agreed with the IMF on the details of an additional memorandum on recent economic policies. The document will show the newest macroeconomic evolutions, will introduce adjusting in policies, and supplementary policies will be included, necessary to achieve the programme objectives.

"The social concerns resulting from high prices for energy resources will be tackled through a programme of well-directed social assistance," the prime minister said.

The prime minister said that, despite the reduction of the momentary tension in the fianincial sector, a serious planning for unexpected situations is necessary, however, as a protection measure against future risks. Vlad Filat said that, by late June 2010, a high-level committee for financial stability will be created, which will include decision-makers of the institutions to deal with the settlement of emergency financial situations. An agreement was reached that the prime minister chairs this committee.

At the end of the conference, the prime minister said that the government will continue efforts to ensure Moldova's social well-being, with the main goal to improve the residents' living standards.

The head of the IMF mission for Moldova, Nikolay Gueorguiev positively appreciated the state of fulfillment of the commitments assumed by the Moldovan government, according to the programme with IMF and the evolution of the reforms promoted by the authorities. He said that the prospects for Moldova's growth depend on the latter's capacity to maintain the macroeconomic stability and enhance its presence on foreign markets.

Nikolay Gueorguiev said that, next July, the Moldovan government will benefit from 89 million dollars to consolidate the budgetary position and fill the currency reserves. This is the agreement signed by the IMF mission and the Moldovan government, due to be submitted to the IMF Executive Board for approval.
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