Moldova & IMF IMF Activities Publications Press Releases

Limba romana                                                                                                      Russian


                                                                                                                                  May 20, 2008


Johan Mathisen
IMF Resident Representative in the Republic of Moldova
 

PRESS STATEMENT


A mission of the European Department of the International Monetary Fund (IMF) headed by Mr. Graeme Justice visited Chişinău during May 7-20, 2008.  

The main task of the IMF mission has been to conduct the Fourth Review under the PRGF arrangement[1].

The mission was pleased to note that performance under the program so far has been positive. Growth prospects for 2008 are good, especially if the harvest is good. Investment is also picking up. However, the mission shares the government’s concerns about the impact of  higher food and energy prices, and has discussed the appropriate policy response to dampen inflationary pressures in the economy, and curtail the growing current account deficit.

This has been reflected in the updated Memorandum of Economic and Financial Policies (MEFP) for the remainder of 2008. This agreement, as always, will need to be reviewed by the IMF Management, following which it will be submitted to the IMF’s Executive Directors for consideration. It is hoped that the transfer of the next tranche of about 18 million USD will be approved in July 2008.


 

[1] 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 percent, and are repayable over 10 years with a 5.5-year grace period on principal payments. The PGRF arrangement with Moldova totals about USD 174 million, of which about USD 124 million have been disbursed so far.