Republic of Moldova: Staff Report for the 2020 Article IV Consultation and Sixth Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Moldova

March 18, 2020

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Republic of Moldova: Staff Report for the 2020 Article IV Consultation and Sixth Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Moldova, (USA: International Monetary Fund, 2020) accessed September 18, 2024

Summary

This paper presents 2019 Article IV Consultation with the Republic of Moldova and its Sixth Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements. Moldova’s economic growth remained solid in the first three quarters of 2019, with output expanding nearly 5 percent, supported by strong domestic demand. The three-year program has been broadly successful in achieving its objectives. Comprehensive reforms have rehabilitated the banking system and strengthened financial sector governance, entrenching macrofinancial stability. Prudent and well-coordinated policies are needed to safeguard the progress achieved. Decisive governance and institutional reforms are necessary for faster, sustainable, and inclusive growth. Safeguarding central bank independence is a priority. The inflation-targeting (IT) regime remains appropriate, but additional efforts are needed to improve policy credibility, promote exchange rate flexibility, and disincentivize foreign currency intermediation. Widespread governance and institutional vulnerabilities are major impediments to accelerating income convergence. Addressing these could have significant growth dividends through faster capital accumulation, reduced labor and human capital headwinds from emigration, and higher productivity.

Subject: Banking, Commercial banks, Expenditure, External debt, Public debt, Public investment and public-private partnerships (PPP), Public investment spending

Keywords: Banking fraud, CR, Debt, Disbursement SDR, Eastern Europe, Europe, Executive board discussion, Global, Governance, Inflation-targeting regime, ISCR, Public investment and public-private partnerships (PPP), Public investment spending, Reform agenda, State, THE ECF

Publication Details

Pages:

116
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2020/076
Stock No:

1MDAEA2020001
ISBN:

9781513537283
ISSN:

1934-7685

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