The IMF Executive Board completed on December 17, 2024, the sixth review under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF)[1] and the second review under the Resilience and Sustainability Facility (RSF), for the Republic of Moldova. This allows for a total disbursement of SDR 122.2 million (about $162.6 million) under both programs, usable for budget support. This brings Moldova’s total disbursements under the ongoing program arrangements to about $810.2 million.

Following the Executive Board discussion, Mr. Kenji Okamura, Deputy Managing Director and Acting Chair made the following statement: “The authorities should pursue prudent policies and maintain buffers and robust contingency plans, including in the energy sector, while fostering growth-friendly investment and reforms, which will also be supported by the EU accession process.

Fiscal policy should remain on a gradual consolidation path to create space for addressing shocks and for growth-enhancing investment while continuing to protect the most vulnerable.”

According to the IMF, the economic recovery is taking hold with growth projected at 2.6 percent this year and 3 percent next year. The fiscal deficit is projected to decline from 5.2 percent of GDP in 2023 to 4.4 percent in 2024 and 4.0 percent in 2025 reflecting stronger-than-expected revenues, driven by buoyant wage and import growth and contained spending.

The IMF press release can be accessed here: https://www.imf.org/en/News/Articles/2024/12/17/pr-24480-republic-of-moldova-imf-concludes-6th-rev-under-ecf-and-eff-and-2nd-rev-under-the-rsf?fbclid=IwZXh0bgNhZW0CMTAAAR3yCiK8TzC7N9OdR9FouN1LMSyolsrRGq9vEcw_1IsADlxk-eSg8I622Lk_aem_Xvkufw6vumuD4hbs1BJglA