Moldova & IMF IMF Activities Publications Press Releases

Limba romana                                                             Russian            

October 25, 2006

Mr. Vasile Tarlev, Prime Minister of the Republic of Moldova
Mr. Johan Mathisen, Resident Representative of the International Monetary Fund in the Republic of Moldova


A mission of the International Monetary Fund (IMF) headed by Mr. Thomas Richardson, Deputy Division Chief, Northeastern Division (Belarus, Moldova, Norway and Russia) in the IMF’s European Department, visited Chişinău during October 11-25, 2006. This was the first review mission under Poverty Reduction and Growth Facility (PRGF).

The mission assessed performance over the previous six months in implementing macroeconomic policies and structural reforms agreed in the memorandum on Economic and Financial Policies (MEFP) for 2006, and held discussions on the Government’s and the National Bank’s MEFP for 2007. The mission was pleased to note that performance under the program in 2006 has been positive.

The mission, jointly with the Moldovan authorities, reached a preliminary agreement on a new MEFP for 2007. This agreement as always will need to be reviewed by the IMF Management, following which it will be submitted to the IMF’s Executive Board for consideration. It is hoped that the IMF Executive Board will be able to consider this proposed agreement in mid-December 2006.

Importantly, the mission plans to propose an increase in the size of the loan, from $118m[1] to about $163m, over three years. This proposed increase would be intended to help Moldova adjust to the difficult external circumstances it faces.


[1] Low income countries can borrow IMF resources under the PRGF paying a concessional fixed interest rate of 0.5% per year and with a maturity of 10 years, after 5.5 years of grace.