Republic of Moldova: Second Post-Program Monitoring Discussions
IMF Staff Country Reports, December 17, 2014
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Bibliographic details
- Published: December 17, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498374668.002
Banking sector: governance and fragility
- Governance in the banking system remains poor.
- The condition of some large banks is fragile.
- Discussions focused on policies to address the significant risks in the banking sector.
Fiscal position and budget financing
- The budget faces a tight financing situation.
- Without corrective measures, the deficit is projected to widen significantly in 2015.
- Discussions emphasized returning to a path of fiscal consolidation.
External sector, trade shocks, and inflation
- Russia’s new restrictions on imports from Moldova are exacerbating the ongoing slowdown in activity.
- These restrictions are easing inflationary pressures.
- The restrictions are weakening export performance.
- Preserving external stability was a focus of the discussions.
Policy priorities and objectives discussed
- Address significant risks in the banking sector.
- Return to fiscal consolidation to stabilize the budget and financing outlook.
- Boost potential growth and preserve external stability in the face of trade shocks.