Moldova & IMF IMF Activities Publications Press Releases


Chisinau, December 21 (INFOTAG). Mr. Richard Haas of the International Monetary Fund
has voiced IMF's disagreement with some provisions in the gas supply agreement signed
recently between Moldova and Russia.

Today, Mr. Haas, at the head of an IMF mission, has accomplished a 4-day working visit
to Chisinau during which he heard Moldovan Government's arguments concerning the gas
agreement, and discussed measures which, once fulfilled, may allow to Moldova to
de-frost relations with the IMF.

The Fund is concerned that the Government has assumed a guarantee to repay gas debts to
the Russian Gasprom concern in case the MoldovaGas Moldo-Russian company fails to do
that. The Moldovan side has also undertaken to guarantee the payment of gas losses on
the Moldovan territory.

The Deputy Premier and Minister of Economy, Andrei Cucu, met Richard Haas on December
20 and said that it is possible to revise the gas agreement terms, but "this is very
complicated and lengthy a procedure". In his words, a decision to revise the terms can
only be taken by the top Moldovan leadership. He spoke out for continuing talks with the
IMF and voiced hope that a compromise would be achieved.

In late 2000, Moldova signed with the IMF the $142 million Poverty Reduction and Growth
facility. Within this program, the National Bank of Moldova has already received $24
million -- $12 million in December 2000 and $12 million in February 2001. After the
Vasily Tarlev Government had come to office, Moldova has not seen any IMF lending. Last
month, a hope appeared for a $12 million tranche to come from the Fund before the end of
December. Now, this tranche seems hardly possible before next February.