Moldova’s relationship with the International Monetary Fund (IMF) has partially improved. At the same time, the IMF now has major expectations of the Republic of Moldova, one of which is to pursue sustainable fiscal policy, economic expert of the Institute for European Politics and Reforms Eugen Giletski said in an interview for Radio Free Europe, quoted by IPN.
The expert noted that the IMF’s current expectations of the Republic of Moldova are big. According to him, no geopolitical situation will secure an accord with the IMF for Moldova if the commitments made by the Government of Moldova are not fulfilled. The unclearness around the conversion of the state guarantee into public debt is one of Moldova’s biggest shortcomings before the IMF.
“It is the state guarantee that was provided by the Government in the case of the loans released by the National Bank of Moldova to the three banks, to the value of about 14 billion lei. At the beginning of April, there was a memorandum between the Ministry of Finance and the National Bank, which paved the way for converting the guarantee into state debt, but there is yet great confusion about this matter,” stated Eugen Giletski.
The expert considers the IMF started to lay special emphasis on the identification of the effective beneficiaries of banks. “The IMF wants to make sure that the regulation body knows who the bank shareholders are so as to be able to prevent actions like those that happened in the system during the last two years,” said the expert.
In another development, Eugen Giletski said the draft state budget law approved by the Government several days ago is too optimistic because it is largely based on external financing that may not come.
