A mission of the
European Department of the International Monetary Fund (IMF) headed by Mr.
Graeme Justice worked in Chişinău during December 4-15, 2008. The main task
of the IMF mission has been to conduct the Fifth Review under the PRGF
The mission was
pleased to note good performance under the program, with inflation falling
to single digits and strong economic growth. Reforms under the program have,
with some exceptions, been implemented as scheduled. The financial system
has been resilient to the global financial crisis. However, the mission
shares the government’s concerns about the impact of economic downturn in
the region and has discussed the appropriate policy response to mitigate any
impact on Moldova. The mission stressed the increased importance of
maintaining prudent macroeconomic policies in 2009.
This has been
reflected in the updated Memorandum of Economic and Financial Policies (MEFP)
for 2009. 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 expected that the transfer of the next
tranche of about 18 million USD will be approved early 2009. The next IMF
mission is tentatively scheduled for late February 2009.