Interlic News Agency - http://www.interlic.md
MOLDOVA MUST EXECUTE THREE CONDITIONS FOR GETTING NEXT TRANCHES OF CREDIT
Chisinau, October 30, INTERLIC. For a positive decision of a question on
allocation to Moldova of the next two tranches of the US$ 25 m credit within the
framework of the Poverty Reduction Program the republic has to execute three
conditions before the appointed at December 18 sitting of the Board of Directors
of the International Monetary Fund.
According to the Permanent Representative of the IMF in the Republic of Moldova
Edgardo Rugiero, the first condition consists in the approval of laws on the
state budget and the budget of state social insurance for 2003 corresponding to
the stipulated earlier recommendations of the Fund's experts.
The second and third conditions are exclusion of any restrictions for export and
approval by the parliament of the Law legalizing introduction in Moldova of the
Making comments upon the results of the work in Moldova of the estimation
Mission of the IMF, Edgardo Rugiero stressed that the RM government has executed
all stipulated earlier structural actions and achieved improvement of situation
at the macroeconomic level.
The Permanent Representative of the IMF emphasized that in view of it the Fund's
experts even reconsidered their former forecasts on the rate of inflation and
growth of the gross domestic product. Experts of the IMF consider that the gross
domestic product in the current year will make 6% and 5% in the next one. The
mid-annual rate of inflation, under forecasts of the Fund, in this year will
make 5% and not more than 6% in 2003.
According to Edgardo Rugiero, the basic discussions in the course of
negotiations with the government were about problems of the tax policy, in
particular, the size of the income tax and assignments in the Social Fund. In
the center of attention of the parties there was also a problem of reforming in
the sphere of public health services.
The Permanent Representative of the IMF in Moldova also said that the IMF
Mission ascertained progress in implementation of the Poverty Reduction Program.
EXPERTS OF IMF COME FOR CAREFUL REDUCTION OF TAX BURDEN
Chisinau, October 30, INTERLIC. Experts of the IMF agreed with reduction in
Moldova of the income tax for juridical persons from 25 down to 22 per cent.
According to Marta Castello-Branco, in the course of negotiations with the
Cabinet of Ministers was considered a number of measures directed at expansion
of the taxable base, due to which it is possible to compensate losses from
reduction of the income tax.
However, representatives of the IMF approved only a part of them. Marta
Castello-Branco emphasized that the IMF experts are not against reduction of the
tax burden, however, in their opinion, it is necessary to do it carefully in
order not to lose a part of the budget's revenues.
In general, as the Fund's experts consider, work on improvement of the business
and investment climate, and also combat with corruption are more important
problems for Moldova now than reduction of the income tax.
MOLDOVAN AUTHORITIES TO ADOPT LAW LEGALIZING PRE-SHIPMENT INSPECTION
Chisinau, October 30, INTERLIC. The Moldovan parliament has to pass the law
legalizing introduction in the republic of the pre-shipment inspection (PSI) of
the imported goods. It is one of the conditions Moldova must execute before the
sitting of the Board of Directors of the IMF appointed at the middle of
December. At this sitting the question of allocation to the republic of the next
tranches of the credit within the framework of the Poverty Reduction Program
will be considered.
The Head of the estimation Mission of the International Monetary Fund, Deputy
Director of Division "B" of the Department Europe II of the IMF Marta
Castello-Branco informed about it today at the press conference dedicated to
summarizing of the visit to the Republic of Moldova.
She emphasized that in the course of negotiations with the government an
agreement that the inspection will work in Moldova until the customs service of
the country gets stronger and works properly was achieved. Marta Castello-Branco
reminded that mechanism of the PSI works worldwide as the temporary instrument
for strengthening of customs services. As she said, as usual this process
requires 2-3 years.
The question is a professional training, introduction of special computer cost
estimation systems of the imported goods. "Such problems can't be solved within
few months," - the Head of the IMF Mission stressed.
Marta Castello-Branco emphasized that, in opinion of the IMF, the PSI is being
introduced in Moldova successfully and the Fund's experts see no sense in
terminating of the given program when it began to confirm its efficiency in
The Head of the IMF Mission stressed that introduction of the pre-shipment
inspection directed at elimination of technical smuggling and increase of
revenues in the budget from the custom duties. It is especially important for
Moldova as the lion's share of revenue part of its budget the customs'
GOVERNMENT IS READY TO ELABORATE DRAFT BILL LEGALIZING INTRODUCTION OF
Chisinau, October 30, INTERLIC. The government is ready to elaborate a draft
bill legalizing introduction in Moldova of the pre-shipment inspection (PSI).
Prime Minister Vasile Tarlev stated this.
The Head of the Cabinet of Ministers commented at the request of journalists
upon the results of negotiations with the IMF Mission on a problem of the PSI.
He stressed that the Fund's experts expressed the understanding of that
decisions of the Constitutional court are out of discussions and must be
executed. We would remind that the CC recognized unconstitutional the decision
of the government on introduction of the pre-shipment inspection.
At the same time, as Vasile Tarlev emphasized, considering the inspection an
important and effective program, the Fund's experts suggested authorities of the
republic to correct the mistake made earlier in the course of adoption of the
program and elaborate the appropriate bill legalizing introduction of the PSI.
According to Vasile Tarlev, the government will work in this direction.
MOLDOVA PLANS TO SIGN WITH IMF A NEW MEMORANDUM ON ECONOMIC AND FINANCE
POLICY OF GOVERNMENT AND NBM
Chisinau, October 30, INTERLIC. The Moldovan leadership and representatives
of the International Monetary Fund plan to sign in November a new Memorandum on
economic and finance policy of the government and the National Bank of Moldova
for 2003. Project of the above-mentioned document elaborated basing to the Draft
Bill on the State Budget for 2003 stipulates priorities of the economic policy
for the next year.
Content of this document was considered today in the course of the meeting of
Prime Minister Vasile Tarlev with Deputy Director of Division "B" of the
Department Europe II of the IMF Marta Castello-Branco.
Marta Castello-Branco positively estimated achievements of the government in
this year, having marked the considerable economic growth.
In return Prime Minister Vasile Tarlev stated that the RM government attaches
especial importance to fulfilling of obligations taken before the IMF and hopes
for receiving of the next tranches of the credit allocated within the framework
of the Poverty Reduction Program.
As it is planned these credits Moldova would get till the end of this year or in
the beginning of the next one.