Moldova, IMF mission reach agreement on 77-million-dollar loan
The Moldovan authorities and the mission of the International Monetary Fund (IMF) have reached an agreement on the allocation of a 77-million-dollar installment seen in Moldova's programme with the IMF.
The agreement was reached at the end of the 27 April-12 May visit to Moldova by the mission of the European Department of the International Monetary Fund (IMF), headed by Nikolay Gueorguiev.
Prime Minister Vlad Filat today told a news conference held on the occasion of the completion of the IMF's mission that the talks with the IMF mission were very fruitful. He added that the key challenges are the continuation of reforms, decrease in the budgetary deficit and control over the inflation rate.
For his part, the head of the International Monetary Fund's mission in Moldova, Nikolay Gueorguiev, said that all the performance indexes had been attained which allowed agreeing on the next 77-million-dollar installment.
The IMF official positively appreciated Moldova's results. "We are in the middle of the IMF programme and for the time being, Moldova managed to overcome, to a large extent, the economic downturn, with the production volume standing at the pre-crisis level. The currency reserves had also hit the pre-crisis level and the budgetary deficit had dropped."
The IMF representatives and the Moldovan authorities also broached the mid-term spending sheet and fiscal policy plans, as well as other macro economic and structural policies meant to back the macroeconomic stability and to promote a sustainable economic growth.
Moldova's three-year programme with the IMF was approved on 29 January 2010. The programme envisages a loan of 369.6 million Special Drawing Rights (SDR) (equivalent to 587 million dollars), of which 170 million SDR (equivalent to 259 million dollars) had already been disbursed. A half of the loan is offered on the basis of the Extended Credit Facility, which sees a zero-per-cent interest rate by late 2011, a 5.5-year grace period and a ten-year reimbursement period. The rest of the money is to be given under the Extended Financing Facility, which envisages an annual interest rate equal to the basic DTS interest rate (standing at 1.27 per cent at present), a reimbursement term of ten years and a grace period of 4.5 years.
Moldpres
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