CAPITAL MARKET WEEKLY
No. 47 (211) - 21 November 2007
THE ECONOMIC SITUATION IN MOLDOVA IS MUCH BETTER THAN PROJECTED, says
IMF Resident Representative in our country
The economic situation in Moldova is much better
as compared to initial projections.
For example, the economic growth for the first six months of the year
amounted to 8 percent as according to our projections we expected 6
percent growth of GDP, sated this Monday the Resident Representative of
the International Monetary Fund in the Republic of Moldova Johan
The IMF expected 5 percent growth of GDP in the Republic of Moldova
this year. In particular, the Resident Representative of the IMF in the
Republic of Moldova ascertained that “growth of investments and exports
is much higher as compared to projections made by the IMF”.
This year the size of foreign investments in Moldova will reach the
figure of USD 450 million alongside with an increase of domestic
investments, added Johan Mathisen.
According to Johan Mathisen, the current level of investments in the
Republic of Moldova reminds one on the level of such in the countries of
Central Europe prior to joining the European Union.
The external imbalance returned to its initial trajectory under the
sign of plus after overcoming external shocks experienced in 2006.
Pressure of current account continues to remain moderate despite of the
increase of trade deficit, fully compensated by the growing inflow of
capital. The level of accumulation of foreign assets has increased as
To that end, the IMF Resident Representative in Moldova appreciated
the accumulation of substantial international reserves by the National
Bank of Moldova which exceeded USD 1.2 billion. At the same time, Johan
Mathisen voiced his concerns about the escalation of inflation, which
“causes growing concerns”. According to the data made available by the
National Bureau of Statistics, for the ten months of this year the
aggregate growth of inflation has reached the figure of 10.7 percent;
however this “is not the reason for suspending financing”.
Likewise, the Resident Representative of the International Monetary
Fund in the Republic of Moldova notified that arriving to Chisinau for
the period of 7 through 21 December will be the IMF mission with the
scope of evaluating performances under the Memorandum of Economic and
Financial Policy and negotiating on the new Memorandum.
Johan Mathisen concluded by stating that the main conditions
stipulated by the Memorandum were fulfilled.
“The government is now at the last stage of working out new
Memorandum”, said the resident representative of the IMF in the Republic
of Moldova. Criteria for reporting will be set for the March of 2008 as
well as for the end of this year when the assessment mission will arrive
to Chisinau. Privatization of Banca de Economii shall become a separate
issue of discussion conducted by the mission of the International
Monetary Fund and Government of the Republic of Moldova, stated Johan
Mathisen, IMF Resident Representative in Moldova during the ordinary
meeting of the Club of Economic Press.
According to the Memorandum on the Economic and Financial Policy,
evaluation of Banca de Economii was due to be accomplished in 2007;
however, after company Deloytte & Touche – the winner of the tender for
evaluation of Banca de Economii manifested some interest to act as an
intermediary in the process of bank privatization, the process of
privatization was suspended while the agreement with the company was
“We will discuss the available possibilities” stated to the press
Johan Mathisen. While urging the authorities to make consistent efforts
in the respective direction, the International Monetary Fund does not
hasten Chisinau. The practice shows that “when the conditions set are
very rigid, then irrespective of the situation, the outcome could be
unsatisfactory”; it is important that the privatization “is conducted
well and correct”, added Johan Mathisen.
The representatives of the International Monetary Fund said before
that it would be advisable to sell out Banca de Economii to a reputable
foreign bank that could bring in new technologies and increase its
Photo: BBC, Marin Turea