Executive Board Approves Further Disbursement to Moldova
The Executive Board of the International Monetary Fund (IMF) on July 16
considered performance of the Republic of Moldova under its Extended Fund
Facility (EFF) arrangement and approved disbursement of the third tranche
under the arrangement in an amount of SDR 15 million (approximately US$21
million). The three-year, SDR 135
million EFF arrangement was approved by the IMF Board in May 1996.
With the present disbursement, IMF financial support for Moldova now
amounts to SDR 185 million (approximately US$255 million), including SDR 37.5
million under the EFF.
reviewing Moldovaís performance under the EFF program, the IMF Executive Board
welcomed the recent strengthening of economic reform efforts, as reflected in
the authoritiesí economic program and in the recent approval of key measures
by Parliament. The Board particularly welcomed the implementation of such
key structural measures as adjustment of energy prices to cost recovery levels
and approval by the Government of debt restructuring and demonopolization plans
for the energy sector, reform of the bankruptcy law and progress in initiating
land reform. The IMF Board stressed
the need for effective implementation of these measures and adherence to the EFF
programís financial targets in the months ahead, to set the stage for a
recovery in output and living standards.
An IMF mission to be led by Mr. David Owen of the Fundís
European II Department will arrive in Chi_in_u next Wednesday, July 23, 1997, to
continue the regular policy dialogue with the Moldovan authorities.
Mr. Shigimetsu Sugisaki, Deputy Managing Director of the IMF, will
join the mission for two days of discussions with the Moldovan authorities.
Mark A. Horton
IMF Resident Representative