The International Monetary Fund (IMF) Executive Board approved on 1 May a new installment worth 15.7 million special drawing rights (about 21.5 million dollars) of the 179 million-dollar- credit for Moldova.
According to a press release by the IMF’s communication department, the Executive Board completed the first evaluation report for Moldova and found that “the programme is broadly on the right track and is backed by the firm commitment of decision-makers on good economic governance”.
“Authorities continue to make significant progress in addressing long-term vulnerabilities in the financial sector and promoting structural reforms. These efforts have contributed to strengthening financial stability and the economic growth has improved. Economy is expected to grow by 4.5 per cent in 2017, higher than the previous forecast”, IMF experts said.
They add that efforts to restore the financial system continue and structural reforms are advancing. “In the financial sector, the diagnosis of the largest banks has been completed and progress has been made in strengthening bank governance and improving shareholders’ transparency. Continuing efforts to consolidate banks’ governance and financial condition and improving the regulatory and supervisory framework are necessary for long-term growth and development”, the executive board said.
The 2017 budget and medium-term budgetary framework are in line with the goals of the programme. Priority actions of this year include revenue growth and improved efficiency and prioritization of expenditure, IMF said.
The IMF Executive Board approved in November 2016 a three-year agreement with Moldova, funded by two loan instruments – Extended Financing Mechanism and Extended Loan Facility. It is meant to support the programme on economic and financial reforms of the state. Thus, Moldova got access to 129.4 million special drawing rights (about 178.7 million dollars). The first installment amounting to about 35.9 million dollars was made available to the Moldovan authorities immediately after the agreement was approved.