IMF Mission to Visit Chisinau During June 4-18, 1998

A mission from the International Monetary Fund will visit Chisinau during June 4-18, 1998 to review economic developments and assess financial performance and implementation of structural reforms in connection with the US$190 million, 3-year Extended Fund Facility (EFF) arrangement between the Republic of Moldova and the Fund that was approved by the IMF’s Executive Board in May 1996.  The mission will be led by Mr. Oleh Havrylyshyn, Deputy Director of the IMF’s European II Department, who will arrive in Chisinau on June 9, following completion of technical work by the Fund team.  The mission will aim to reach agreement with the Moldovan authorities on a financial program and set of structural reform measures to be taken during the rest of 1998 with further financial support from the Fund.    

         Key issues will include:

·        a strengthening of the fiscal situation via amendments to the 1998 state and social fund budgets in expenditure policy and management and tax policy and administration;

·        review of the external economic situation, including with large current account deficit, external sources of financing, external trade policy and foreign debt;

·        measures to reduce energy, wage, and pension arrears;

·        monetary and exchange rate policy;

·        legal reforms;

·        acceleration of privatization and enterprise restructuring; and,

·        acceleration of energy and agriculture sector reforms. 

The mission follows the high-level visit by Mr. John Odling-Smee, Director of the IMF’s European II Department, to Chi_in_u in early May and is the first set of discussions with the new Moldovan government.  The last Fund mission took place in early February, while the last disbursement under the EFF program was in mid-July 1997.  A number of disbursements under the EFF program have not been made due to weaknesses in performance.                

 Approximately US$52.5 million have been disbursed by the IMF to the National Bank of Moldova under the EFF program, and the current level of IMF support to the Republic is approximately US$240 million.

Mark A. Horton
IMF Resident Representative
Chisinau, Moldova