MOLDOVA TO RECEIVE $18 MILLION IN THE NEAR FUTURE
Chisinau, May 20 (
INFOTAG ). The policy of the Government and the National Bank of Moldova
(NBM) on decreasing the inflation has been the main topic at a meeting
between their representatives and the IMF mission, which completed its
visit to Moldova on Tuesday.
IMF Mission Head Graeme Justice said at a press conference that the
mission is satisfied with the Government's reforms and the NBM's
measures on diminishing the consumer price level in the republic. In
contrast to the IMF previous mission, which visited Chisinau in December
2007 only the mission head and IMF Resident Representative to Moldova
Johan Matissen were present at the final conference. In December 2007,
Prime Minister Vasile Tarlev, NBM President Leonid Talmaci, Minister of
Economy and Trade Igor Dodon and Minister of Finance Mihai Pop were
present at the final press conference.
The mission head expressed his optimism concerning Moldova's economic
growth in 2008 and said that the IMF forecasts a 5-6% GDP increase.
Justice said that in case of good yield in the agrarian sector, this
index can be even higher.
Speaking about the inflation, he remarked that despite the objective
growth of prices for energy resources and foodstuffs, the increase of
the basic inflation index is observed in Moldova.
The Fund explains the growth of prices for local food products with
the 2007 drought, which caused the obvious price growth for food
Justice says that the availability of a big money mass under
condition of the growth of the foodstuff supply at the market owing to a
good yield can result in the abrupt decrease of the consumer price
The IMF mission Head expressed his optimism in respect of the
inflation, which will be possible to decrease in the nearest two-three
He said that it is difficult to tell undoubtedly, what will be the
inflation index in Moldova in 2008.
He said that there can be several scenarios, but we must be optimists
and believe, if not in 2008, so in 2009 the inflation will not exceed
The mission considers that the IMF Board of Directors will be able to
consider and to approve the IMF mission's results by the middle of June
In the frame of the Economic Growth and Poverty Reduction Strategy it
expires in April 2009) the IMF will grant USD174 million to Moldova.
Until the present time the IMF has already allocated USD124 million to
Moldova. These resources are granted to the NBM on privileged terms:
maturity - 10 years, interest rate - 0.5%, grace - 5.5 years.
FOREIGN INVESTORS CONSULTS IMF ABOUT MOLDOVA'S ECONOMIC SITUATION
Chisinau, May 20 ( INFOTAG ). Foreign investors show their active
interest to the situation of Moldova's national economy, IMF mission
head Graeme Justice said on Tuesday. The mission was in the republic
from May 5.
He said that investors often address to the IMF and to its country
office in Chisinau and ask about the macro-economic situation in the
The IMF representatives remarked that in their explanations the
fund's experts tell investors that the Moldovan national economy has
good prospects for growth.
IMF Resident Representative to Moldova Johan Matissen said that among
the republic's problems there is a high inflation for the time being and
a number of transition period problems.
When asked by Infotag, whether the revised Memorandum on the
Government's Economic and Financial Policy for 2008 includes conditions
on the compulsory privatization of the state property, Justice said the
state property privatization was not discussed with the Government.
The IMF experts expressed hope that the Government will continue the
practice of publishing the Memorandum in order to give a chance to as
many people as possible to be acquainted with this Memorandum.
IMF RECOMMENDS MOLDOVA TO DECREASE CURRENT ACCOUNT DEFICIT
Chisinau, May 20 ( INFOTAG ). The mission of the International Monetary
Fund, which concluded its visit to Moldova on Tuesday, recommended that
the Government should decrease the current account deficit.
IMF Mission Head Graeme Justice said at a news conference in the
Government, that the decrease of the gap in the account will allow the
Government to decrease the inflation level more efficiently.
In his words, in 2007 the index of Moldova's current account deficit
constituted 17% of its GDP.
Justice said that in many aspects it is connected with the external
shocks, the Moldovan national economy was exposed to last year: the
abrupt price growth for natural gas and oil products, the drought and
Russia's ban on Moldovan wine exports to the traditional Russian market.
The IMF experts consider that in 2008 the situation is much more
favorable , which will allow Moldova to decrease the current account
deficit, on the one hand, and it will have a positive effect on
suppressing the inflation level, which constituted 5.7% from the 2008,
on the other hand.
The mission underscored, as a positive factor the growth of budget
revenues, which increases both owing tax contribution and privatization.