11.03.2022

The IMF-supported program will be revised to ensure larger financing

The IMF-supported program will be revised in the light of the new economic context, to ensure the necessary framework for the substantial increase in financing by external partners, particularly as direct non-repayable budget support. Prime Minister Gavrilita stated it as a press conference, in the context of the IMF mission visit to Chisinau.

The goal of the IMF mission led by Ruben Atoyan is to review the implementation of the economic reform program supported by ECF/EFF arrangements, as well as to assess additional financing needs in the light of the current macroeconomic context.

The war in Ukraine and the economic sanctions imposed on the Russian Federation has complex consequences on global economy – economic fragmentation and trade and value chain disruptions, as well as high volatile energy and food prices, said the Prime Minister.

‘However, the main macroeconomic indicators in Moldova are sound and the budget has a certain level of reserves and flexibility. Our responsible and correct economic management in the last months allows us to request only a program review rather than emergency financing,’ mentioned Natalia Gavrilita.

The Prime Minister mentioned that the Government would continue focusing on a number of critical areas, tis first priority being to maintain the standards of living of population. Natalia Gavrilita stated in this context that the Government would come up with a pension indexation program in the coming week, to be implemented from April 1. In parallel, the Government will continue developing and implementing mechanisms for targeted assistance to low-income households.

In conclusion, Natalia Gavrilita expressed confidence in the fact that discussion with the International Monetary Fund would mobilize the general framework for additional financing by the EU and other international partners. Discussions are held both by the President and the Government.

The visit of the IMF mission will end on March 16, 2022.