Armine Khachatryan, Resident Representative of the International Monetary Fund (IMF) in Moldova, said the IMF supports the completion of an independent expert assessment of the central bank supervisory process regarding the fraudulent transactions that occurred during 2012-2014. But this will not be part of technical assistance as the IMF does not have the expertise to conduct such assessments, IPN reports.

“The assessment will aim to cover all aspects of the supervisory process, including actions taken by the central bank as a supervisor, laws and regulations in place, and the degree of freedom/independence the central bank had. The outcome of this work will be an important input into understanding what went wrong, and what were the fundamental loopholes in the system,” Armine Khachatryan stated when answering questions from journalists on the financial sector, fiscal policy, and the real economy.

“In general, Moldova needs to implement policies that would broaden the tax base and enhance tax administration. This would allow the country to raise higher revenues for growth-enhancing and social expenditures. Until now the tax authorities made an effort to align tax administration operations with good practice,” said the IMF Resident Representative.

According to her, the IMF technical assistance missions have recommended rationalizing CIT and PIT exemptions, updating the real estate valuations for tax purposes, improving tax compliance, and strengthening the efficiency of revenue administration. In addition, standardizing the CIT rates and eliminating tax discounts could provide additional revenues.