Republic of Moldova: Fourth and Fifth Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements, Completion of the Inflation Consultation, and Request for Extension of the Arrangements and Rephasing of Access-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Moldova
IMF Staff Country Reports, September 25, 2019
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- Republic of Moldova: Fourth and Fifth Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements, Completion of the Inflation Consultation, and Request for Extension of the Arrangements and Rephasing of Access-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Moldova
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Bibliographic details
- Published: September 25, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513515434.002
Overview
- The paper addresses Republic of Moldova’s Fourth and Fifth Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements, Completion of the Inflation Consultation, and Request for Extension of the Arrangements and Rephasing of Access.
- The Moldovan authorities have taken decisive corrective measures to bring the Fund supported program back on track and to achieve its objectives of ensuring macroeconomic stability and advancing reforms.
- Going forward, it is critical that the authorities continue to pursue prudent policies and structural reforms aimed at strengthening the financial sector, maintaining fiscal sustainability, and creating space for social and infrastructure spending.
Main findings and program status
- Policies remain focused on cleansing the financial sector, ensuring growth friendly fiscal policy, and enhancing transparency in the energy sector.
- The authorities are committed to completing the rehabilitation of the banking system.
- The authorities are committed to addressing vulnerabilities in the non-bank sector.
- The authorities are committed to promoting predictable energy tariff setting.
- The authorities are committed to maintaining fiscal sustainability to preserve space for social and infrastructure spending.
Policy recommendations and priorities
- Continue prudent macroeconomic policies to sustain program objectives of macroeconomic stability and reform advancement.
- Pursue structural reforms aimed at:
- Strengthening the financial sector.
- Maintaining fiscal sustainability.
- Creating fiscal space for social and infrastructure spending.
- Focus on:
- Cleansing the financial sector.
- Ensuring growth friendly fiscal policy.
- Enhancing transparency in the energy sector.
Financial sector measures
- Complete rehabilitation of the banking system.
- Address vulnerabilities in the non-bank sector.
- Maintain policies focused on cleansing the financial sector.
Energy sector measures
- Promote predictable energy tariff setting.
- Enhance transparency in the energy sector.
International Monetary Fund. Republic of Moldova: Fourth and Fifth Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements, Completion of the Inflation Consultation, and Request for Extension of the Arrangements and Rephasing of Access; Staff Report; and Statement by the Executive Director for the Republic of Moldova, September 25, 2019.
Content in this bundle
- 1mdaea2019002