TOKHIR MIRZOEV HINTS IMF MISSION MAY NOT COME TO MOLDOVA UNTIL LATE APRIL
Chisinau, April 2 (
). International Monetary Fund's Resident Representative in Moldova, Mr.
Tokhir Mirzoev, does not rule out the fact that the IMF assessment mission
may not come to Moldova before the completion of the three-year cooperation
program that expires in April 2013.
Talking to Infotag correspondent, he confirmed that he had a meeting with
acting Prime Minister Vlad Filat last week, during which they discussed the
eventual visit of a new IMF Assessment Mission to Moldova in April 2013.
"At the current stage, we are holding negotiations and are considering a
possible visit of the IMF Mission to Moldova, in the current circumstances,
namely, when the Government's powers are limited and when several decisions
that do not comply with our agreements had been adopted," he said.
In his words, among these decision are: the unplanned increase in pensions,
the introduction of a single tax in agriculture, the raise in civil
servants' salaries, as well as the preservation of 12% of the VAT on the
special accounts of agricultural and sugar producers, who will have to pay
to the state budget only 8% of the VAT.
"It is not clear yet whether the country has financial possibilities to put
into life these plans or not; what compensation measures will be undertaken
for the state budget and wherefrom the money will come," he said.
In his words, the visit to Moldova of the IMF Assessment Mission and the
allotment of the last tranche depends on the development of the political
situation in the country and on the authorities' readiness to conduct a
comprehensive dialogue on this and other matters.
Mirzoev also said that there are possibilities to extend the program, but to
this end, serious grounds and a clear-cut position of the Moldovan
authorities, towards the economic development prospects, are needed.
Infotag's dossier: Since 1993, Moldova has had the following
arrangements with the IMF in support of the authorities' economic adjustment
programs: Compensatory and Contingency Financing Facility (CCFF), Systemic
Transformation Facility (STF), Stand-by arrangements (SBA), Extended Fund
Facilities (EFF), and Poverty Reduction and Growth Facilities (PRGF) - from
2009 called Extended Credit Facilities (ECF). In 2009 Moldova has also
benefited from a one-time SDR allocation amounting to SDR 117.71 million.
Total Fund credit and loans outstanding at the end of December 2012 amounted
to SDR 398.2 million (about US$ 612 million).
Following the November 2012 visit, Moldova and IMF arranged to prolong the
term of the current program, which expired at the end of 2012, for 3 months.
Completion of the 6th assessment mission will enable Moldova to receive the
last tranche of US$76 million, meant to maintain its monetary reserves. The
Board of Directors of IMF was expected to assess the sixth review of the
Program and adopt the resolution for allotting Moldova the last tranche till
the end of April, 2013. The Three-Year Arrangement approved by IMF for
Moldova on January, 29, 2010 provides backing at a total amount of 369.6
million of Special Drawing Rights (SDR) of which 320 million SDR or close to
US$490 million has been allocated to Moldova. 50% of the loan is allotted
under the Extended Credit Facility which provides the zero rate interest
rate till the end of 2013, the 5.5 -year - long grace period and the
10-year-long maturity. The rest of the sum is extended under the Extended
Fund Facility which stipu lates the interest rate equal to the basis rate of
SDR, the 4.5 -year -long grace period and the 10-year-long maturity.
The first who spoke of IMF's shattered confidence in Moldova, was acting
Deputy Premier, acting Minister of Economy, Valeriu Lazar, who said that
"the Republic of Moldova behaved unfairly towards the International Monetary
Fund." In his opinion, the relations with the IMF are back in the 2009 year,
when the country had no agreements with the fund. The main reason for the
dented confidence was the adoption of some legislative acts, without the
consent of the IMF.
In retort, acting Prime Minister, Vlad Filat [a Liberal Democrat] named
"speculative" the recent sayings by the Acting Deputy Premier, Minister of
Economy Valeriu Lazar [a Democrat] that Moldova's relations with the IMF
have allegedly deteriorated after the AEI authorities had passed some Laws
without the Fund's blessing. Filat also said that an International Monetary
Fund mission will come to Chisinau "in the nearest time".