The International Monetary Fund gave the green light on Wednesday to the release of 27 million dollars for Moldova, a neighboring country of Ukraine and which is facing the consequences of the war, welcoming progress in “
essential governance reforms
”.
“
The IMF board of directors has completed the first reviews under the
aid agreements, approved in December and extended in April, the institution said in a statement.
This gives the country access to 20.65 million special drawing rights (the IMF unit of account, SDR in English), which corresponds to approximately 27 million dollars.
“
The impact of the war in Ukraine has yet to fully materialize, with the economy expected to stagnate in 2022 due to the repercussions of the war, rising food and energy prices, and a fragile confidence
,” the fund detailed.
“
Moldova's program advances essential governance reforms to increase the country's resilience to shocks, while providing additional resources to meet urgent socio-economic needs
,” the institution also welcomed.
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This brings to $245 million the amount disbursed for Moldova under this assistance, granted by the IMF in exchange for economic reforms, and provided through the so-called Extended Credit Facility (ECF) mechanism as well as the Extended credit (MEDC).
The aid was initially approved in December, then increased in April, bringing the total to about $815 million.
The program takes place over three years (40 months).
A small country of 2.6 million inhabitants wedged between Ukraine and Romania, Moldova obtained the status of candidate for entry into the European Union at the end of June.
