December 21 (SeeNews) - Moldova has reached an agreement with the International Monetary Fund (IMF) for a $590.6 million (524 million euro) funding programme with a term of 40 months, the IMF said.
The IMF has approved Moldova’s requests for an economic reform programme under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF) arrangements, which enables the initial disbursement of $84.4 million to the country, it said in a press release on Monday.
The 40-month programme’s objectives are to sustain the post-pandemic recovery, address pressing developmental needs, and strengthen governance and institutional frameworks.
Moldovan authorities are expected to implement structural reforms in order to address vulnerabilities to improve the rule of law and the anti-corruption framework and strengthen fiscal and financial governance, ultimately accelerating income convergence with European peers.
Moldovan prime minister Natalia Gavrilita announced the preliminary loan agreement in October.
The executive board has also concluded the 2021 Article IV consultation with Moldova.
"The Moldovan authorities have made commendable progress in rehabilitating the banking sector and bolstering macro-financial stability. However, the COVID-19 pandemic, drought in 2020, and the ongoing surge in global energy prices, have slowed economic activity, intensified downside risks, and complicated policy making," IMF deputy managing Director and acting chair Kenji Okamura said in the press release.
Moldova's previous $572 million loan deal with the IMF expired in March last year.
($ = 0.8874 euro)