PRESS CONFERENCE OF THE IMF RESIDENT REPRESENTATIVE EDGARDO RUGGIERO:

MOLDOVA WILL NOT GET IMF CREDIT IN 2003...

Chisinau, July 30 (INFOTAG). The recommencement of Moldova's external
financing is not going to be discussed by the IMF Governors' Board on September
10, which means that Moldovan chances of getting new tranches under the IMF
economic growth and poverty reduction program are gone.

Speaking at a press conference on Wednesday, the IMF permanent representative
in Moldova Edgardo Ruggiero said Moldova had failed to meet the agreed terms by
July 21.

First of all it concerns the introduction of pre-shipment inspection for
imported goods, as well as the elimination of obstacles for scrap metal exports.
The situation with the World Bank's SAC-Ш program hasn't been cleared either.
Moreover the government pressed ahead with unmotivated reduction of gas
electricity tariffs and announced the intention to merge the National Regulatory
Agencies for Energy and Telecom.

Ruggiero advised that the new IMF mission would arrive in Chisinau not earlier
than October; it won't discuss the implementation of the old program but would
study the economic situation and negotiate the new one.

Whether it would require a new memorandum with IMF, Ruggiero said that since
the current program expires in December 2003, the approval of the new one will
require a new agreement.

Ruggiero also took a dim view on Moldovan government's chances to mend (by
then) all the 'shortcomings' pointed out by the IMF and the World Bank.

August is the time of recess, especially for the parliament and therefore all
the work will practically stop. The Ministry of Finance and the National Bank
must work out their proposals for national budget without external financing.
The IMF will act only as a consultant - said the IMF representative.

Ruggiero said the IMF would also like to see the role of government outlined in
the new program and strategy for the national economy development.

'The government should not only collect taxes but facilitate business
development as well.'

MOLDOVA UNABLE TO APPLY TO PARIS CLUB FOR DEBT RESTRUCTURING

Chisinau, July 30 (INFOTAG). This year, Moldova won't be able to apply to
Paris Club for partial restructuring of its external debt, said Edgardo Ruggiero
on Wednesday during a press conference in Chisinau.

Moldova's application won't be considered without IMF's program in place.

Ruggiero believes the IMF refusal to resume financing should affect Moldova's
chances of getting grants from other sources and donor-countries as well; this
year Moldova was hoping to take out in grants some 444 mln lei.

The half-year results show that Moldova indeed managed to achieve some economic
results and therefore we continue negotiating some grants for the country with
certain donors - said the IMF representative.

In his opinion, the lack of external financing shouldn't seriously affect
Moldova's macroeconomic performance, especially GDP that can make up for loss
from customs and fiscal revenue.