## IMF Staff Completes Review Visit to Moldova

_IMF News, March 27, 2018_

## Source details

**Canonical URL:** [IMF Staff Completes Review Visit to Moldova](https://www.imf.org/en/news/articles/2018/03/27/pr18108-imf-staff-completes-review-visit-to-moldova)

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## Bibliographic details
- Published: March 27, 2018

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### Mission and agreement
- Press Release No. 18/108 dated March 27, 2018.
- An IMF staff team led by Ben Kelmanson visited Chisinau from March 15-27, 2018.
- IMF staff and the Moldovan authorities reached staff-level agreement on the third review under a three-year Extended Credit Facility and Extended Fund Facility (ECF/EFF) arrangement.
- Agreement is subject to approval by IMF management and the Executive Board; consideration by the Executive Board could happen as early as May, following the authorities’ implementation of a number of prior actions.
- Completion of the review will make available SDR 24.0 million (about US$34.9 million).

### Economic outlook and growth
- Economic growth was strong in 2017, supported by robust domestic demand and a favorable external environment.
- Growth is projected to remain solid in 2018, at 3.8 percent.
- The authorities have made progress in strengthening economic policies to preserve stability and strengthen the foundation for the medium term.

### Financial sector and banking vulnerabilities
- Staff highlighted progress in addressing vulnerabilities in the banking sector.
- Sustained and determined efforts to rehabilitate the financial system are required, including:
  - strengthening the governance and financial condition of banks;
  - enhancing regulatory and supervisory frameworks.
- These measures are described as vital to maintaining financial stability, sustaining growth, and job creation.

### Monetary policy and inflation
- Monetary policy continues to focus on price stability within a flexible exchange rate regime.
- Inflation peaked in late 2017 and is expected to slow further in 2018.
- Recommendation: In the near term, the NBM should keep monetary policy on hold, without excessively responding to transitory changes to food and regulated prices.

### Fiscal policy and public spending
- Implementation of the 2017 budget and the authorities’ fiscal policy commitments for 2018 are in line with program objectives and support growth-friendly measures.
- Continued efforts are recommended to focus on:
  - improving public investment and social spending;
  - tax and customs reforms;
  - improving the efficiency of spending.

### Asset recovery and governance reforms
- The authorities emphasized their commitment to recover stolen assets.
- On the basis of the recently concluded Kroll investigation, the authorities are working on a strategy and action plan to recover such assets.
- Authorities are taking measures to improve medium-term prospects by:
  - strengthening economic governance;
  - addressing the shadow economy;
  - reducing regulatory and administrative burdens;
  - promoting greater transparency, predictability, and good governance in the energy sector.

*Source: IMF press release, Press Release No. 18/108, March 27, 2018.*

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## References

- [Republic of Moldova and the IMF](http://www.imf.org/external/country/MDA/index.htm)
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- [PRESS CENTER](http://presscenter.imf.org/)
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_Source: https://www.imf.org/en/news/articles/2018/03/27/pr18108-imf-staff-completes-review-visit-to-moldova_