Press Release

Interlic News Agency - http://www.interlic.md

THE IMF CONSIDERS THE NEW BILL ON THE PRE-SHIPMENT INSPECTION AS ACCEPTABLE

Chisinau, June 4, INTERLIC. The International Monetary Fund considers the new
variant of the Bill on the Pre-shipment Inspection, elaborated by the RM
government as acceptable. As INTERLIC News agency reports, IMF representative to the RM Edgardo Rugiero has declared it at a press conference today.

He has noted that this document is the result of the compromise between the IMF and the RM government after long talks. IMF Resident Representative has said
that the bill is in the Parliament now. According to him, there is no final date for the approval of this document, but if this process drags on, the IMF will have to put off a sitting of the IMF Board of Directors on Moldova.

Edgardo Rugiero has underlined that the IMF expects the speediest approval of
the bill and the implementation of the Program on the Pre-shipment inspection.
Alongside with it, he has particularly underlined that the Pre-shipment
inspection is not the main problem in relations between the IMF and the RM
government, since there are many other contentious issues. According to Edgardo
Rugiero, not so much attention was paid to the pre-shipment inspection, as the
reporters allege.

As INTERLIC News agency reports with reference to credible sources, the final
version of the Bill on the Pre-shipment Inspection, which version was agreed
upon with the IMF experts, envisage that only one company will render
pre-shipment inspection services. It is also envisaged that the government will
make up the list of goods, freed from this inspection, together with the
company, rendering these services.

THE IMF DISAGREES WITH THE RM GOVERNMENT THAT THE TRANSITION FROM JUDETS TO RAYONS WOULD LEAD TO A REDUCTION IN EXPENDITURES

Chisinau, June 4, INTERLIC. The International Monetary Fund disagrees with an
assertion of the RM government that the transfer from the judets to rayons in
the frames of new administrative-territorial system will result in the reduction
of the expenditures for the maintenance of the local authority institutions. As
INTERLIC News agency reports, IMF representative to the RM Edgardo Rugiero has
declared it at a press conference today.

According to him, a simple analysis shows that the transfer from 10 judets to
32 rayons will call for considerable funds for the repair of the administrative
buildings, purchasing furniture, cars, office devices, telephones and seals. As
he has noted, since the changes take place on all the levels, the expenditures
will be considerable and it is a luxury, when there is no external financing.

Alongside with it, if the administrative-territorial reform is the only
problem, it can be solved. After all, the level of decentralization is
determined by the higher executive power of the country, though, as the IMF
representative considers, 10 judets in such small country as Moldova were enough
for an efficient administration on the spots.

FULFILLING OBLIGATIONS

Chisinau, June 4, INTERLIC. The International Monetary Fund considers that Moldova has achieved certain progress in the fulfillment of the agreements, reached with the IMF, though certain government decisiona cause preoccupation on the part of IMF experts. As INTERLIC News agency reports, IMF representative to the RM Edgardo Rugiero has declared it at a press conference today.

In this connection he has mentioned the bill on the Pre-shipment Inspection, the decision on the removal of all the export restrictions, the revision of the State Budget-2003 and the Social Insurance Budget-2003.

Besides, Edgardo Rugiero has underscored the positive dynamics of the budget receipts from the revenue and customs services and a good performance of the National Bank of Moldova and the Ministry of Finance.

Alongside with it he has pointed out to a number of problems, which cause preoccupation on the part of the IMF experts. In particular, IMF representative to the RM Edgardo Rugiero has underlined that the exporters continue facing difficulties due to restriction of administrative character.

Besides, he has underscored hurry and no through economic analysis of the situation, when the RM government takes decision, involving expenses, which are not embodied in the budget.

Edgardo Rugiero has underlined that the real cost of the approved laws becomes known after their approval by the Parliament. On the preparatory stage the experts of the Ministries give superficial data without taking into consideration the opinion of the experts of the Ministry of Finance. That is why the sources of financing for covering additional expenditures are searched after the passage of bills in the Parliament.

In this connection IMF representative to the RM Edgardo Rugiero has mentioned the amendments to the Law on Veterans and the indexation of pensions.

Edgardo Rugiero has underlined that the RM government often approved economically unsubstantiated bills, but during the latest period their number is more considerable than usual. He has said that the IMF will discuss the revision of the budget-2003 with the government on other items. IMF representative to the RM Edgardo Rugiero has expressed hope that the sides will find ways to solve pending problems. The IMF mission is optimistic.

MOLDOVA MAY RECEIVE THE NEXT TRANCHES OF THE IMF CREDIT NOT EARLIER THAN IN JULY

Chisinau, June 4, INTERLIC. The RM may receive the next tranches of the IMF
credits not earlier than in June, if the RM Parliament passes the Bill on the
Pre-shipment Inspection and the RM government signs a New Memorandum on Economic and Financial Policy of the Government and the NBM.

As INTERLIC News agency reports, IMF representative to the RM Edgardo Rugiero
has declared it today. He has noted that the IMF Mission, led by Deputy Director
in II European Department Marta Castello Branco, will assess the economic policy
of the RM government in the frames of the reform program, agreed with the IMF.
In the course of meetings with the RM authorities the IMF experts will discuss
the course of the implementation of the conditions, undertaken by the RM for the
release of financing on the part of the IMF.