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In
Russian language
Thursday, June 19, 2003
Moldova has last chance to get IMF
credit
Concluding the 2-week visit to Moldova, Deputy Director
of the IMF`s European II Department and Mission Head Marta Costello-Branco said
Moldova is facing the last opportunity to get the third credit in the framework
of the IMF programme, which is due to expire by this year end. Without financial
crediting, the Law on 2003 Budget will find itself on the brink of failure;
however, the Moldovan government is still reluctant in regard to a set of issues
it was called for to implement. IMF officials inquire about the third deferment
of the tranch to the country. The IMF Mission could request the IMF Executive
Board to extend the programme implementation for another year only at the
September sitting of the board, providing the measures required from the
government are adopted by July 21. A minor deferment will inevitably signal the
end for the implementation. And the Mission will have to start negotiations
anew. This will not break bilateral relations with Moldova - the IMF Bureau will
continue its work in Chisinau and conduct annual consultations with the Moldovan
government.
 The
chief conditions by the IMF listed the ratification of the Law on Budget and the
Law on Budget of State Insurance advised by the IMF, the elimination of export
restrictions and introduction of the pre-shipment inspection. Yesterday, the
parliament commission for economy spoke negatively of a new bill on the
pre-shipment inspection, which demands the inspection be conducted by only one
company. The IMF said no competition is practical in this area. The bill was
agreed on with the Fund officials already one month ago; however, it has been
put in motion only recently. The date of its ratification will determine whether
the Moldovan government will sign the contract with SGS rendering the service.
 Mrs
Castello- Branco said the Mission and top Moldovan officials agreed to step up
efforts to improve entrepreneurial activity in the country, provide equal
conditions for private businesses and ease state control over them. These issues
were said to raise many questions among potential foreign investors and the
"international community." Moldova is to decide whether it is moving towards the
market economy or back to the old pattern, said Mrs Costello- Branco. Many of
recently adopted state measures are likely to support the resurrection of the
old economy. "In the market economy," said the Misssion Head, "businesses should
have opportunities to make decisions independently."
Mrs Costello-Branco did not back the government`s intention to revoke taxation
of imported production wheat given the presently chronic situation in the
agricultural sector, for it will not resolve agricultural issues, which reappear
annually. Under the provisions of this year`s limited state budget, any
concession to the tax burden must accordingly expand the number of taxed
economic agents and thus eliminate preferential terms.
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