Moldova: IMF Program Meets Goals, Recovery Lags
The IMF-supported program in Moldova was implemented in line with the established objectives and parameters.
However, there are delays in implementing some structural reforms. Economic recovery is also slower than anticipated due to the ongoing war in Ukraine and its negative consequences. These are the conclusions of the IMF Mission led by Clara Mira, who visited Chisinau for discussions between April 22 and May 3.
According to an IMF press release, the Moldovan authorities met all structural performance benchmarks aimed at strengthening tax administration and finalising the assessment of state-owned enterprises. Additionally, the Climate Action Law was passed. However, the IMF Mission Chief noted delays in implementing agreed-upon reforms to bolster the institutional autonomy and governance of the National Bank of Moldova (NBM), which had a deadline of December 31, 2023. Delays were also identified in establishing an anti-corruption judicial framework, including a credible judicial selection process, with a deadline of March 31 of this year.
"Moldova's economic recovery has been slower than expected due to the persistent effects and challenges caused by the war waged by Russia in Ukraine. Real GDP grew by only 0.7% in 2023, falling short of the IMF's 2% forecast during the last program review."
The press release further states that the Moldovan economy is projected to continue recovering in 2024, with an expected growth rate of 2.6%. However, this is still lower than previously forecast. Potential risks include new energy shocks or another wave of refugees. On the other hand, positive factors include faster-than-anticipated economic growth in Moldova's trading partners, swifter progress towards EU accession, and an acceleration of structural reforms.
The Republic of Moldova signed a 40-month program with the IMF on December 21, 2021. This program provides a loan of approximately USD 783 million, of which about USD 459 million has already been disbursed. Additionally, a new agreement under the Resilience and Sustainability Facility (RSF) for roughly USD 170 million was approved in December 2023.
Translation by Iurie Tataru
Republica Moldova a încheiat un Program cu FMI cu durata de 40 de luni pe 21 decembrie 2021. Acesta prevede acordarea unui împrumut de aproximativ 783 milioane dolari SUA, dintre care aproximativ 459 milioane dolari SUA au fost deja plătite.
În plus, în decembrie 2023 a fost aprobat un nou acord în cadrul mecanismului pentru reziliență și sustenabilitate (RSF) de aproximativ 170 milioane dolari SUA.
