Republic of Moldova: Staff Report for the 2020 Request for Disbursement Under the Rapid Credit Facility and Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Moldova
IMF Staff Country Reports, April 22, 2020
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- Republic of Moldova: Staff Report for the 2020 Request for Disbursement Under the Rapid Credit Facility and Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for the Republic of Moldova
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Bibliographic details
- Published: April 22, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513541884.002
Executive summary and purpose
- IMF support aims to finance health and macroeconomic stabilization measures, catalyze donor support, and shore up confidence in Moldova.
- The authorities have reinforced their commitment to engage in a governance-focused arrangement with the IMF in the coming months.
- The IMF stands ready to support Moldova in addressing its immediate and medium-term policy challenges.
Economic assessment and risks
- Downside risks have intensified.
- Public debt remains sustainable with low risk of distress.
- The National Bank of Moldova is ensuring orderly exchange rate adjustment and preventing liquidity distress.
- Financial policies continue to focus on prudent restructuring of banks’ credit portfolios subject to maintaining loan classification and provisioning standards.
Policy response and measures taken by authorities
- Health and social measures:
- Ramped-up spending to respond to urgent healthcare needs.
- Strengthened social assistance and unemployment programs.
- Fiscal and business support:
- Provided temporary tax relief.
- Implemented subsidized credit schemes to protect employment and businesses.
- Monetary and financial sector:
- Ensuring orderly exchange rate adjustment.
- Preventing liquidity distress.
- Emphasis on prudent bank credit restructuring while maintaining loan classification and provisioning standards.
Role of IMF support
- Immediate objectives:
- Finance health and macroeconomic stabilization measures.
- Catalyze donor support.
- Shore up confidence in Moldova.
- Medium-term objectives:
- Support authorities’ recovery policies while maintaining macroeconomic and financial stability.
- Engage on governance-focused arrangement in the coming months.
Content in this bundle
- 1mdaea2020003