IMF approves $268M for Moldova's reforms & climate
The International Monetary Fund (IMF) has approved a $95 million disbursement and a six-month extension to its existing loan program for Moldova, acknowledging the country's strong performance despite significant challenges.
Additionally, the IMF granted a new $173 million loan through the Resilience and Sustainability Facility (RSF) to bolster Moldova's climate resilience and energy sector reforms, as noted in a recent International Monetary Fund (IMF) statement.
The IMF commended Moldova's commitment to its economic reform program under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements, which has been crucial in navigating the complex environment created by the war in Ukraine and other crises. The authorities successfully implemented important reforms related to fiscal governance, financial sector oversight, and the rule of law, mitigating the energy crisis and achieving a faster-than-expected decline in inflation.
Despite the positive developments, the IMF acknowledges that Moldova faces significant headwinds from the ongoing war and energy shocks. Directors encouraged the government to remain focused on mitigating these impacts, supporting the economic recovery, and promoting sustainable, green growth, all while aligning with the country's EU accession efforts.
Author: Iurie Tataru
