Moldova & IMF IMF Activities Publications Press Releases


Chisinau, August 8 (INFOTAG). An IMF mission, that has
completed its two week long working visit to Chisinau, is
satisfied with the economic policy waged by the Moldovan
Government, mission leader Mr. Richard Haas told a news
conference here today.

During the visit, the mission agreed with the Government on
supplements to the 2000 memorandum - the basic document whose
fulfillment is crucial for resuming lending by the International
Monetary Fund.

Mr. Haas pointed out Moldova had achieved macro-economic
successes, a 5 percent GDP growth, lowered inflation to 9
percent, an impressive increase in exports. This, in a
combination with the current tax and monetary policy, gives
grounds to hope that the Cabinet of Ministers is able to cope
with the Memorandum commitments, he said.

He presumes the new Government has healthy ambitions, and can
fulfill the agreed-on supplements to the Memorandum that outline
concrete measures and timing for the steps to be undertaken by
Moldova to resume external crediting.

In Mr. Haas' opinion, the signed agreement practically signifies
completion of the negotiations, so there is no need for a
repeated coming to the republic.

Concerning privatization, Richard Haas said that the recently
adopted privatization program and announcement of an investment
contest to privatize two wineries and electricity distribution
enterprises signify the new authorities' intention to continue
the privatization process.

Prime Minister Vasily Tarlev characterized the agreement signed
with the IMF as a historic moment for the Moldovan economy,
which permits to hope for debt re-scheduling by the Paris Club,
and serves a signal for resumption of lending by the World Bank
and donor countries.

In November 2000, Moldova signed the above-mentioned Memorandum
under which the IMF began its $142 million crediting within a
program to fight poverty and achieve growth. Before the change
of government in early 2001, Moldova had managed to receive for
this program only two tranches $12 million each.


Chisinau, August 8 (INFOTAG). Right after the IMF Board
approves amendments to the Memorandum, a decision may be taken
to resume financing for Moldova. In Mr. Haas' words, "the terms
of the resumption would depend entirely on the Board's date. It
could be October or November", to told the news conference

If the decision is positive, Moldova may get another $12 million
tranche within the anti-poverty and growth program yet by the
end of autumn, he said.

A money receipt by the end of the year or later is not the chief
thing for Moldova. The most important thing is to hear that the
Board is satisfied with Moldova's economic policy and with how
the republic meets its commitments, Mr. Haas said.

"We are looking this year at $15-20 million from the World Bank,
a Dutch grant and some EU money. This is critical for Moldova",
he said.

Richard Haas failed to answer which part of the Moldova's $172
million dues, to be disbursed against foreign debts on 2002, can
be re-scheduled by the Paris Club, and for which period, because
the size of debt and terms of repayment are different with each
concrete creditor.

Premier Tarlev expressed hope that the repayment would be put
off till a possibly later time, and that a part of debts would
be simply annulled by the creditors.