The Republic of Moldova obtained access to 27 million dollars following the evaluation of the IMF Board of Directors of the 40-month program.
The total amount disbursed under the program with the IMF will reach 206.6 million SDR, equivalent to 275 million US dollars.
“Moldova will continue to face numerous challenges. We forecast the economy to contract by 1.5% in 2022, followed by a modest recovery of 1.5% in 2023, due to the lingering impact of the Russian Federation’s war against Ukraine and the worsening economic outlook for major commercial partners of the Republic of Moldova. According to estimates, the maximum level of inflation has already been reached. In November, inflation was still high, reaching the level of 31.4% (compared to the previous year). According to the forecast, in 2023 the budget deficit will increase to 6 percent of GDP, reflecting the impact of policy measures aimed at tempering the severity of the crisis in the energy sector and worsening living standards, and the current account deficit will continue to be affected by higher costs of the import of energy resources. The risk that economic development will be affected is high and persistent, including the risk of escalation of the war waged by the Russian Federation against Ukraine. However, despite the difficult environment, the program of the Republic of Moldova with the IMF continues to be firmly implemented, with important program commitments being successfully achieved in the areas of budgetary and financial governance, as well as what concerns the reform of the state enterprises sector”, it is stated in the message of the IMF. Read more at BANI.MD