IMF DIRECTORS APPRECIATE MOLDOVAN GROWTH, BUT ADVISE
CHISINAU TO SPEED UP REFORMS

Chisinau-10.02.2005/16:28:11/(BASA-economic) The Executive Board of
the International Monetary Fund (IMF) has appreciated the economic
growth in Moldova last year, but the Directors still advise the
Chisinau Government to speed up the structural reforms, IMF Resident
Representative Edgardo Ruggiero told a news conference in the
Moldovan capital on Thursday, February 10.

The Board reviewed on February 7 the economic and financial report on
Moldova and its policies. The European Union Action Plan for Moldova
and the Economic Growth and Poverty Reduction Strategy Paper were
rated as the most successful actions.

Moldova demonstrated a good pace of growth in 2004, though it was
lower than the average in the Commonwealth of Independent States, the
Board found. As for the structure of growth, the Directors observed
that the country benefitted from a strong regional growth and the
alarmingly remittances from migrant workers.

Another concern was the rate of inflation, which was "a little bit
higher in the past years."

The Board advised the Moldovan Government to speed up the structural
reforms, which would improve the perspectives of a medium-term
growth. First, this is about improving the business environment and
the investment climate, and reducing the direct and indirect
involvement of the government in economy, Mr. Ruggiero stated.

The IMF official said the Directors made themselves clear about the
need for an effective and credible programme of reforms and the
demonstration by action in order to persuade the Fund to sign a new
financial agreement with Chisinau. The staff of the lender is
available to offer consultations and to discuss, he added. The
Moldovan authorities are interested in having a new agreement with
the Fund, but discussions in this regard may begin after the
parliamentary elections - when a new cabinet is formed and when its
programme of actions is made public, Ruggiero underlined.