IMF WELCOMES GOVERNMENT'S INTENTION TO EXPAND TARGETED AID - TOKHIR MIRZOEV
Chisinau, Mai 20 (
). The International Monetary Fund (IMF) welcomes the Moldovan authorities'
plan to expand the coverage of the targeted aid to 65% of families, having
right to social assistance, in 2012.
In an interview with your Infotag correspondent, IMF Resident Representative
in Moldova, Tokhir Mirzoev, said that further expansion of expenditures on
social needs is mostly connected to the Government' possibility to expand
the population inclusion in the targeted social assistance system on the
grounds of assessing real level of family revenues.
"The Budget 2011 and other accompanying regulatory acts will allow Moldova
continue efforts towards achieving goals of the tax-and-fiscal strategy
under the IMF-supported program", he said.
Head of the IMF representative office attached an attention to the
Budget-provided deficit decreasing to 1.9% of GDP, while ensuring continued
reduction of the share of current expenditure in GDP and making space for
increased investment and targeted social assistance to reduce poverty.
"The IMF and authorities are partners having a common goal - to restore
macroeconomic stability, including fiscal sustainability in Moldova and
support economic growth", Mirzoev said.
He said that main budget expenditures items for Moldova's development are
investment in infrastructure and targeted social assistance for poverty
"The amounts of these expenditures considerably increased in the past two
years. The 2010 experience, when the capital expenditure budget was not
drawn in full, suggests that the infrastructure investment is limited by the
country's absorptive capacity, rather than financing", he said.
The IMF Resident Representative said that the situation shows the necessity
of a faster implementation of reforms that aims to improve investment
project and state purchase projecting efficiency.
MOLDOVAN ECONOMIC GROWTH MAY BE IMPEDED BY SURPLUS MONEY SUPPLY - TOKHIR
Chisinau, Mai 23 (
). The excessive money supply may impede the growth of Moldovan economy
due to a high inflation rate and macroeconomic instability, IMF Resident
Representative in Moldova, Tokhir Mirzoev, has said.
In an interview with your Infotag correspondent, he said that, owing to
this, the National Bank of Moldova's (NBM) main task is to calibrate the
monetary policy in order to find a necessary money amount to achieve the
goal of low and stable inflation level.
"Since 2009, Moldova's monetary policy stance has been highly
accommodative in an attempt to support the ailing economy. During this
period, the reserve requirements were nearly halved and the policy
interest rate remained negative in real terms. This led to a large
surplus of liquidity in the banking system and helped maintain financial
and macroeconomic stability during the crisis, while supporting the
recovery", Tokhir Mirzoev said.
He said that, in actual conditions, when the economy develops and
crediting grows quickly, the excess liquidity threatens to again
increase the demand pressure.
"The pressure in the absence of adequate response from domestic supply
could put at risk both domestic and external stability", the IMF
He said that, owing to this fact, the time has come for the National
Bank to shift its focus from supporting the economic recovery to
prevention of inflation risks. Its target for the end of 2012 is the
inflation of 5 +/- 1.5 percentage points.
"There are limits to what the central bank can do if energy prices
increase substantially from present levels. But at current global price
projections, we are confident that a well-calibrated monetary policy
should be able to keep inflation low, without stifling growth", Mirzoev
According to him, the seasonal growth in energy and foodstuff prices
will lead to the inflation indicator increase in the first half of 2011.
"However, these effects are expected to wear out by summer, as was the
case last year. Meanwhile, core inflation - inflation excluding food and
energy -dropped below 3% in March which is good news. Based on this we
believe the current forecast is clearly realistic with appropriate
monetary policy", IMF representative Tokhir Mirzoev said.
REPAYMENT OF INVESTPRIVATBANK DEPOSITS WAS DIFFICULT, BUT NECESSARY
MEASURE - TOKHIR MIRZOEV
Chisinau, Mai 25 (
). Resident Representative of the International Monetary Fund (IMF) in
Moldova, Tokhir Mirzoev, has called the repayment of all
InvestPrivatBank deposits (and not only the insured sums) in 2009 a
difficult, but necessary measure.
In an interview with your Infotag correspondent, he said that it was a
very important step in order to avoid spreading of deposit withdrawals
in the banking system.
"But, a large burden was placed on Banca de Economii (BEM) in the
process and it is impeding the bank's development. Therefore, we
recommend that this burden be removed from it as soon as possible",
He said that profits gained at the InvestPrivatBank assets selling must
be used to cover Banca de Economii expenses.
"It is quite possible that the InvestPrivatBank assets selling will not
make up expenses and some net cost would remain to be covered from other
sources", the IMF representative said.
As Infotag has already reported, to date, authorities consider various
modalities of covering such net cost that presuppose, namely, issue by
the Ministry of Finance of special state securities for BEM. It can not
be ruled out that a part of means will be provided by banks owing to a
special tax the state wants to introduce.