BANKS & FINANCE FORTNIGHTLY BULLETIN
No. 24 of November 2001
MOLDOVA STANDS TO GET $5 MILLION, IMF REPRESENTATIVE SAYS
Following is an interview with IMF's permanent representative to Moldova Mr
Banks and Finance: A meeting of the IMF Board for Moldova scheduled for
been put off indefinitely on grounds that the Moldovan government failed to
number of provisions contained in the memorandum it signed with the fund. Things
lot different now. When is the Board going to be convened after all?
Mr. Hassan-Al-Atrash: The government has fulfilled a number of provisions it had
on in the addendum to its memorandum with the Fund. More specifically, the
has signed a contracted with the SGS company on pre-shipment inspection of
parliament is debating in earnest a number of laws and the cabinet has drafted
budget for the nest year. We therefore hope the Board will be convened in
Question: Could you be more specific?
Answer: The exact date will depend on the Board. It is now essential that the
parliament pass the bankruptcy law. This would have to contain a separate
restructuring. Besides, the draft law on financial and lending institutions is
pending. Yes, the law on free enterprise zones has already been passed.
Should the parliament lean towards major changes in the draft budget for the
the IMF Board may not be convened at all, even though there is no separate
this effect in the fund's agreement with the Moldovan government. It is also
that the government wrap up its negotiations with the World Bank over the third
Structural Adjustment Credit.
Q: If everything goes as planned and the IMF board will be convened in
December, are we to infer that the national bank will not get $12 million in the
framework of poverty
A: The money may get into Moldova in three days after the Board's meeting has
Q: How much can the republic count on this year?
A: If we were optimistic, we would say that Moldova may get around $40 million
addition to $5 along the SAC-II lines, plus WB's first SAC-III tranch ($15
plus 10 million EURO from the European Union and another $4 million from the
Q: Is there a chance that the republic may get this money even before the
the IMF Board is held?
A: The World Bank has said that Moldova stands to get $5 million. Regarding the
from the European Union and the Dutch Government, it is technically feasible for
do that; however, they would wait for a go-ahead from us, or, roughly speaking,
amount to a confirmation that Moldova lives up to its promises. Regarding the
the Dutch government, they would also need a go-ahead from the World Bank; which
related to the SAC-III negotiations.
Q: The government hints at "other exit routes" if the hopes of external
not materialize this year. How convincing do you find that?
A: I am hardly aware of the government's planning scenarios, but I guess the
must be counting on the cash earned on privatization of Moldotelecom, power
and wineries. Another option could be clamping down on corruption, particularly
energy sector. This might well be the case given the government's pledge to root