IMF MISSION TO VISIT MOLDOVA IN MID-JUNE - TOKHIR MIRZOEV
Chisinau, Mai 28 (
). A Mission of the International Monetary Fund will pay a visit to Moldova
in mid June, said IMF Resident Representative to Moldova, Tokhir Mirzoev.
He said on Tuesday at a meeting with a group of journalists that the IMF
Mission will be led by its outgoing Head, Nikolay Gueorguiev.
Tokhir Mirzoev also said that by mid June, the situation around the creation
of a new government will be much clearer.
"If the country has a full-fledged Government, the IMF Mission will discuss
a new cooperation program with Moldova. Yet, if the country moves towards
early parliamentary elections, the IMF Mission will discuss with the acting
government how to minimize the budgetary losses in this period," said
He also recalled that the previous IMF Program with the Moldovan Government
had been extended for another three months and expired in late April 2013.
"Some of the latest decisions taken by the Moldovan government ahead of its
resignation, run counter to the IMF Program," said Tokhir Mirzoev, drawing
attention to the fact that many issues have been successfully completed over
those three years of cooperation.
Among the main achievements of the cooperation program, he named the
reduction of the budgetary deficit, the macro-economic stability, the
efficient monetary policy and the decrease of the inflation rate.
"Over the past three years, we have witnessed positive developments in the
dynamics of the budgetary deficit," said Mirzoev, noting that in 2013,
Moldova stood good chances to have a stable position in terms of state
Referring to the situation of the 2013 state budget, he said that the
absence of a Memorandum of Cooperation between the Moldovan Government and
the International Monetary Fund may negatively tell on some projects due to
be carried out with international institutions, and on the proceeds due to
enter the state budget within the frameworks of this projects.
As example, Tokhir Mirzoev named the cooperation with the World Bank (WB)
and the fact that some of the WB projects require the presence of a
Memorandum with the International Monetary Fund.
"In this connection, it is necessary to identify additional financing
sources or to resort to amendments of some budget items," he said.
The IMF Resident Representative to Moldova said that the International
Monetary Fund has not changed its previous economic forecast for the
country, according to which Moldova's economic growth will make 4% in 2013.
"We suppose that 2.5% will be attained in the farming sector that will
recover after the losses incurred after the 2012 drought, whereas the rest -
1.5% will be achieved in other sectors of the Moldovan economy," said
Mirzoev, noting that the current indexes confirm the potential for this GDP
growth in 2013.
Infotag's dossier: Since 1993, Moldova has had the following arrangements
with the IMF in support of the authorities' economic adjustment programs:
Compensatory and Contingency Financing Facility (CCFF), Systemic
Transformation Facility (STF), Stand-by arrangements (SBA), Extended Fund
Facilities (EFF), and Poverty Reduction and Growth Facilities (PRGF) - from
2009 called Extended Credit Facilities (ECF). In 2009 Moldova has also
benefited from a one-time SDR allocation amounting to SDR 117.71 million. At
the same time, due to the recommendations of the International Monetary
Fund, as well as to concessionary financing, the Republic of Moldova managed
to attain financial stability after the 2009 economic downturn. The major
part of the financial assistance provided by the International Monetary Fund
was used for replenishing the currency reserves of the National Bank. The
IMF describes these proceeds as a "safety cushion" for the Moldovan economy,
in case of external shocks a nd challenges, as the national economy is very
vulnerable towards foreign influence. At present, Moldova's currency reserve
makes US$2.47 billion.