Moldovan government to strengthen cooperation with IMF
Chisinau, 8 May /MOLDPRES/ - The Moldovan government will strengthen
its cooperation with the International Monetary Fund (IMF) in order
to implement macroeconomic policies and structural reforms so as to
register a sustained economic growth. The statement was made
yesterday by Moldovan Finance Minister Mariana Durlesteanu at a
meeting with a mission of the IMF European Department, headed by
Graeme Justice.
According to the protocol and press service of the Finance Ministry,
IMF Resident Representative to Moldova Johan Mathisen has made an
analysis of the budgetary situation in Moldova in the first three
months of 2008. The official positively appreciated the fulfillment
of goals seen in the Poverty Reduction and Growth Facility (PRGF)
Programme. They also set the objectives for the next months.
During the meeting the officials focused on control of expenses,
treasure system, arrears of the local authorities, budgets of the
local public authoriti es and their execution, as well as the
financing of the budget of central authorities.
The Poverty Reduction and Growth Facility (PRGF) is the IMF's
concessional facility for low income countries. PRGF loans carry an
annual interest rate of 0.5 per cent, and are repayable over 10
years with a 5.5-year grace period on principal payments.
The PGRF arrangement with Moldova totals about 174 million dollars,
of which about 124 million dollars have been disbursed so far.
Moldovan premier meets IMF mission in Chisinau
 Chisinau, 8 May /MOLDPRES/ - Prime Minister Zinaida Grecianii on
7 May met a mission of the International Monetary Fund (IMF), on
a 7-21 May mission to Chisinau.
The main task of the IMF mission is to conduct the Fourth Review
under the Poverty Reduction and Growth Facility arrangement,
carried out with Moldova's government, which provides for
assistance worth 124.7 million dollars, according to the
executive's press service.
The head of the IMF mission, Graeme Justice, said that the
government implemented the great majority of the provisions of
the bilateral Memorandum (Memorandum on Economic and Financial
Policies). The IMF's main concern remains keeping inflation
within the established parameters, with the global increase in
prices for foodstuffs and energy resources, as well as in the
wake of the last year drought. To this end, Graeme Justice
suggested to sharpen the monetary and fiscal policies, and
balance the state budget.
The prime minister said that the inflation increase in the first
quarter of 2008 was triggered by the rise in prices for four
categories of goods in Moldova, among which some food products
and the passenger transport. At the same time, the prices for
non-food products increased only 0.9 per cent, and if not to
take into account the above products, a deflation would be
registered.
Zinaida Grecianii said that the increase in the interest rate
might not be the best solution to keep the inflation level, with
untraditional solutions being necessary. "The government removed
the quantitative restrictions on the import of meat, which will
stimulate the supply of these products, and limited the trade
supplement in the commerce with construction materials, mainly
cement, and we are willing to cope with the rise in the
inflation level," Grecianii said. At the same time, the prime
minister declared for pressing ahead with the investment
projects, even in the conditions wh en they could fuel the
demand on the domestic market.
The premier handed over to Graeme Justice a draft of the new
Memorandum with IMF, and voiced conviction that the sides will
reach a consensus as regards all the issues raised for
discussion.
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