TOKHIR MIRZOEV SAYS THAT IMF REMAINS OPEN FOR DISCUSSING A NEW COOPERATION
Chisinau, April 25 (
). The International Monetary Fund remains open for discussions on a new
cooperation program with the Republic of Moldova, IMF Resident
Representative in Moldova, Mr. Tokhir Mirzoev told journalists today.
He said that the International Monetary Fund believes that it is appropriate
to start a dialogue on the matter only after the creation of a full-fledged
Asked whether the new memorandum will have a financial component as well,
Tokhir Mirzoev said that in the beginning, it should be established if this
component is truly needed.
"The last tranches were used for replenishing the currency reserves of the
National Bank of Moldova. Yet, at present, there are enough currency
reserves at the NBM and there is no stringent need for financial assistance
of the International Monetary Fund," he said.
Mirzoev reminded that the current three-year financing program between
Moldova and the International Monetary Fund will end in late April.
"In early 2013, the IMF Board of Directors decided to extend by three months
the cooperation program between Moldova and the International Monetary Fund,
in order to give the authorities much time for the implementation of the
agreements reached during the latest assessment mission, held in November
2012. Since then, much has been done, but less - put into life. Alongside
this, some of the recent political measures, undertaken by the Moldovan
Government and approved by the Parliament, run counter to the agreements
with the IMF. Proceeding from these facts, and taking into account the
political situation in Moldova, and in particular, the absence of a
full-fledged government, the International Monetary Fund cannot complete the
last Review Program by late April," he said.
In his words, in connection with this, Moldova will not receive the last
tranche of US$76.3 million, within the three-year financing program with the
International Monetary Fund.
"I don't see anything disastrous in the fact that Moldova will not receive
this money. The work of the IMF will not stop here and the cooperation will
not be ceased. We will further provide technical assistance to the Republic
of Moldova," said Mirzoev.
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 would have enabled 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 granted under the
Extended Fund Facility which stipulates the interest rate equal to the basis
rate of SDR, the 4.5 -year -long grace period and the 10-year-long maturity.
... AND THAT THERE ARE SUBSTANTIAL DIFFERENCES BETWEEN 2009 YEAR AND CURRENT
ECONOMIC SITUATION IN MOLDOVA
Chisinau, April 25 (
). There are many significant differences between the macro-economic
situation recorded in 2009, when Moldova started talks with the
International Monetary Fund, on a cooperation program, and the current state
of things in this sector, believes IMF Resident Representative in Moldova,
Mr. Tokhir Mirzoev.
He said on Thursday at a meeting with Moldovan journalists that the
inflation rate has been maintained at a stable level. Thus, the National
Bank of Moldova manages to preserve the inflation rates within the
established corridor (5% В±1.5%). The budgetary deficit and the budgetary
discipline have significantly strengthened, accounting for 2% in late 2012.
"This is close to the level regarded as sustainable by the International
Monetary Fund. In general, the macro-economic and financial stability is
preserved at the needed level," said Mirzoev.
In his words, over the past years, the Moldovan authorities managed to lay
the groundwork and to start important structural reforms.
"Unfortunately, many of them remain at the stage of debates or at the
approval of the legislative basis. Yet, there are many reforms that have
been started and that are being promoted," said Mirzoev.
In his words, for the further development, it is very important to
consolidate the attained results and not to roll back.
"In this connection, we have expressed our concern with the recently-adopted
political measures, as they are undermining the budgetary discipline, formed
over the past three years," he said.
Infotag's dossier: 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, then-acting Prime Minister, Vlad Filat [a Liberal Democrat] named
"speculative" the 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. At that time, Filat also said that an
International Monetary Fund mission will come to Chisinau "in the nearest