An IMF team led by Ben Kelmanson visited Chisinau from October 25–November 7 to conduct discussions for the 2017 Article IV consultation and Second Review under the Extended Fund Facility (EFF) and Extended Credit Facility (ECF) arrangements. The team reached staff-level agreement on policies needed to complete the Second Review under the Program, and had constructive discussions on the 2017 Article IV Consultation.
The agreement is subject to approval by IMF Management and Executive Board. Consideration by the Executive Board is tentatively scheduled for late December. The completion of the review will make an additional SDR 15.7 million (about $22 million) available, IMF team head Ben Kelmanson said in a news conference given in Chisinau together with Prime Minister Pavel Filip, IPN reports.
“The outlook for Moldova is favorable. The dynamics of reforms should be supported so as to accelerate economic growth and reduce poverty,” stated Ben Kelmanson.
Pavel Filip said the program with the IMF signed a year ago is a certificate of confidence for the Republic of Moldova. Moldova benefitted from economic and financial stability and economic growth returned following the crisis. “The budgetary-fiscal policy meets the program commitments and larger public spending and social investments are possible,” stated the Premier.
Moldova’s three-year IMF program, approved on November 7, 2016, is supported by a loan of SDR 129.4 million (about US$182 million, or 75 percent of the Republic of Moldova’s quota), of which SDR 41.7 million (about US$59 million) have been already disbursed. Two thirds of the loan are provided under the Extended Credit Facility, which carries a zero interest rate through 2018, a grace period of 5½ years, and a 10-year maturity. The rest of the loan is provided under the Extended Fund Facility, which carries an annual interest rate equal to the SDR basic rate of charge (currently 1.3 percent), and is repayable over 10 years with a 4½ -year grace period.
