The Republic of Moldova has requested the International Monetary Fund (IMF) to launch a new cooperation program without a financial component. The announcement was made by the head of the IMF’s permanent mission in Chisinau, Svetlana Cerovic, during a meeting with journalists.
According to the official, the Moldovan government has already submitted a request to the IMF to examine the possibility of preparing and signing such a program, and internal procedures within the Fund to review the request have already begun.
“The existence of such a program means support from the Fund without traditional financing. The authorities in the Republic of Moldova believe that such a program would represent a sign of trust from the IMF in the policies and reforms being promoted. It could also increase confidence in the country, which is important for economic growth and attracting foreign investment,” Cerovic said.
According to her, the request sent to the IMF states that the program would last three years.
The IMF representative noted that programs without financing still require the same commitments regarding economic policies and reforms as traditional programs that include financial support.
The previous program with the IMF ended at the end of October last year, but Moldova did not receive the final two funding tranches totaling about 170 million US dollars. Authorities acknowledged that the funds were not disbursed due to the failure to meet certain commitments, particularly related to spending policies.