Between October 31 and November 11, a mission of the International Monetary Fund (IMF) led by Mr. Ruben Atoyan will hold talks in Chisinau. This will happen in the context of the second evaluation of the ECF-EFF program. ECF-EFF program is the Extended Mechanism of crediting (ECF) and the Extended Financing Mechanism (EFF), writes Bani.md.
Mainly, the IMF experts will discuss the general aspects of the state budget for 2023 which is being drawn up. Moreover, they will also assess macroeconomic prospects and risks, and inform about the progress achieved in the implementation of the actions agreed upon under the program supported by the IMF.
The program of the Moldovan authorities, supported by the IMF, has a duration of 40 months. It was approved on December 21, 2021. In May 2022, the total volume of lending was increased to approximately 826 million U.S. dollars. (SDR 594.3 million), of which US$258 million (SDR 185.95 million) has already been disbursed.
ECF financing carries an annual interest rate of 0% and a grace period of 5,5 years. The repayment term of ECF is 10 years. The EFF financing, however, provides for an annual interest rate equal to the base interest rate of the DST. The EFF has a repayment term of 10 years and a grace period of 4,5 years.