IMF Staff Country Reports

Republic of Moldova: Sixth Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements, Request for modifications of performance criteria, and Second review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Alternative Executive Director for the Republic of Moldova

December 19, 2024

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Format: Chicago

International Monetary Fund. European Dept. "Republic of Moldova: Sixth Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements, Request for modifications of performance criteria, and Second review Under the Resilience and Sustainability Facility Arrangement-Press Release; Staff Report; and Statement by the Alternative Executive Director for the Republic of Moldova", IMF Staff Country Reports 2024, 355 (2024), accessed March 22, 2025, https://doi.org/10.5089/9798400297151.002

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Summary

This paper presents the Republic of Moldova’s Sixth Reviews under the Extended Credit Facility and Extended Fund Facility Arrangements, Request for Modification of Performance Criteria, and Second Review under the Resilience and Sustainability Facility Arrangement. Recovery from the multiple shocks is taking hold, and inflation has remained within the National Bank of Moldova’s target band since October 2023. However, downside risks remain large, mainly related to the geopolitical situation and renewed energy shocks. Prudent policies and maintaining buffers and robust contingency plans, including in the energy sector are needed to address looming risks. Fostering growth-friendly investment and reforms, supported by the EU accession process will help advance toward Moldova’s development objectives.

Subject: Budget planning and preparation, Climate change, Environment, External debt, Fiscal risks, Public debt, Public financial management (PFM)

Keywords: Anti-corruption, Authorities' reform, B. government policy, Budget planning and preparation, CB governance, Climate change, Climate policy, Consultation band, Credit, Energy security, Energy transition, EU integration, EU reform agenda, Fiscal risks, Global, Gradual consolidation, Letter of intent., Natural disasters, Policy commitment, Reform measure, RSF reform, Weather events risk

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