IMF Executive Board Concludes Second Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements for the Republic of Moldova

Tue, 10/01/2023 - 15:39 |

The Executive Board of the International Monetary Fund (IMF) concluded the second review under the 40-month Extended Credit Facility (ECF) and Extended Fund Facility (EFF) Arrangements for the Republic of Moldova. This allows for the immediate disbursement of SDR 20.65 million (about US$27 million), usable for budget support, bringing Moldova’s total disbursements under the blended ECF/EFF arrangements to SDR 206.6 million (about US$275 million).

The program has helped the authorities respond to multiple shocks in in an agile and comprehensive way. Continued progress on governance reforms helps foster resilience, while creating a solid foundation for strong and inclusive growth.

Moldova’s outlook remains fraught with challenges. Moldova’s program implementation remains strong despite the difficult environment, with completion of important program commitments in the areas of fiscal and financial governance, and reforms of the state-owned enterprises (SOEs) sector.

Following the Executive Board discussion, Mr. Kenji Okamura, Deputy Managing Director and Acting Chair, made the following statement:

“Despite these challenges, the authorities remain firmly committed to the Fund-supported program, which aims to support the vulnerable while advancing governance reforms and addressing developmental needs to create conditions for sustainable and inclusive growth. The authorities have successfully completed structural commitments on public investment management, the SOE sector reforms, and financial sector governance.  

The authorities’ near-term policy priorities are appropriately focused on safeguarding energy security, protecting the most vulnerable from the cost-of-living crisis, and preserving macro-financial stability. Going forward, maintaining an appropriate policy mix will be critical to withstand downside risks, should they materialize, while pursuing longer-term developmental objectives. Continued efforts are needed to improve spending efficiency, foster budget credibility, and mobilize domestic revenue.”