October 6, 2006
Representative in the Republic of Moldova
from the IMF’s European Department, headed by Mr. Thomas Richardson, will work
in Chisinau from Wednesday, October 11, to Wednesday, October 25, 2006. This is
the first review mission under Poverty Reduction and Growth Facility (PRGF).
task of the IMF mission is to take stock of the past performance of the
government and the National Bank in meeting commitments under the program, and
to assess the macroeconomic outlook for 2007. The mission will also attempt to
come to an agreement with the government and the National Bank on macro
projections for 2007 and associated targets. On the structural side, we expect
that the focus of the program will continue to be on three areas: continued
financial sector reform, improved fiscal management, and structural reforms
designed to improve the business environment.
Finally, as usual,
Mr. Richardson and his team will hold a short press briefing at the end of this
The PRGF is the IMF's concessional
facility for low income countries. PRGF loans carry an annual interest rate
of 0.5 percent, and are repayable over 10 years with a 5.5-year grace period
on principal payments. On May 5, 2006
Board approved the PGRF arrangement with Moldova in the total amount of
about US$118.5 million, the first tranche of which – about US$17 million –
was transferred to the National Bank of Moldova in mid-May 2006.