Moldova & IMF IMF Activities Publications Press Releases

Limba romana                                                                                                      Russian

                                                                                                                                  September 18, 2008

Johan Mathisen
IMF Resident Representative in the Republic of Moldova



A mission of the European Department of the International Monetary Fund (IMF) headed by Mr. Graeme Justice visited Chişinău during September 11-18, 2008. 

The mission noted the progress on curbing inflation. Single-digit inflation now appears reachable, but will require sustained fiscal efforts. Growth performance has been good despite the lingering effects of last year’s drought, and economic growth might be somewhat higher than earlier envisaged. The outlook for 2009 remains positive, despite the regional slowdown and worsening current account deficit.

The mission discussed the draft State Budget for 2009 and urged the authorities to support the efforts of the National Bank to stem the appreciation of the Leu by maintaining a prudent fiscal stance. The discussion focused on the importance of the structural reforms to improve the efficiency of the public administration to contain current spending and ensure sufficient resources for investment. In particular, the mission stressed the need to promote modern government by accelerating reforms in social assistance, education, public administration, and health.

The Fifth Review mission for the PRGF[1] arrangement is tentatively scheduled for late November/early December.


[1] The Poverty Reduction and Growth Facility (PRGF) is the IMF's concessional facility for low income countries. PRGF loans carry an annual interest rate of 0.5 percent, and are repayable over 10 years with a 5.5-year grace period on principal payments. The PGRF arrangement with Moldova totals about USD 174 million, of which about USD 138 million have been disbursed so far.