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IMF, Moldova reach staff-level agreement on loan arrangement review

IMF, Moldova reach staff-level agreement on loan arrangement review IMF and Moldova

CHISINAU (Moldova), July 10 (SeeNews) - The International Monetary Fund (IMF) said on Wednesday it has reached a staff-level agreement with the Moldovan government on a loan arrangement review that would make available a further $46.5 million (41.4 million euro) to the country.

The IMF staff and Moldovan authorities have reached a staff-level agreement on the combined fourth and fifth reviews under an economic reform programme supported by the three-year Extended Credit Facility and Extended Fund Facility (ECF/EFF) arrangements, the IMF said in a press release.

The staff-level agreement is subject to an approval by the IMF management and the IMF executive board.

An IMF staff team led by Ruben Atoyan visited Chisinau during June 26 to July 10.

"Consideration by the Executive Board could take place in September 2019, subject to implementation by the authorities of agreed prior actions on ensuring the sustainability of public finances, improving tax compliance, and advancing the banking sector rehabilitation. Completion of the review will make available SDR 33.6 million (about US$46.5 million)," Atoyan said in the press release.

According to the IMF, the Moldovan authorities have made good progress in advancing the rehabilitation of the banking system. The IMF also noted that the new government is committed to advance macro-economic reforms to bring the IMF-supported programme to a successful completion.

 Moldova's new government headed by Maia Sandu was formed in June by the pro-EU coalition of ACUM and the pro-Russian Socialist Party (PSRM) following months of political turmoil prompted by inconclusive general elections.

So far, Moldova has received $113.3 million in four tranches from the IMF under the current three-year credit facility of $178.7 million approved in November 2016.

($ = 0.8909 euro)