OREANDA-NEWS. May 17, 2010. This was announced by the head of the IMF mission Nikolay Gueorguiev at the joint press conference with the Prime Minister of Moldova Vladimir Filat. He noted that these funds will be allocated to Moldova within the framework of the program supported through the extended credit facility and extended funding facility (ECF / EFF), after the IMF Executive Board in early July will adopt the conclusion of the first review of the named program.

Nikolay Gueorguiev said that during its visit to Moldova from April 28 to May 13 2010 and negotiations with the authorities IMF mission has reached an agreement on the completion of the first review within ECF/EFF, which should be approved by the leadership and the Executive IMF Council. The fund’s experts stated that all criteria of the program and indicators planned were fulfilled. At the same time, the economy of the country is restoring being contributed by the growing financial stability and restoration of activity in the partner-countries.

It can be reminded that a three-year program of IMF with Moldova, adopted on January 29 this year, provides financial support totaling 369.6 million special borrowing rights (SBRs) (approximately USD574.4 million); 60 million SBRs of which (about USD 90 million) have already been transferred. Half of the loan is offered through the extended credit facility (ECF), which provides a zero interest rate till the end of 2011, a 5.5-year grace period and repayment term of 10 years.

The remaining amount is granted through the extended funding facility (EFF), which provides the interest rate equal to the base rate of SBRs (currently, 1.27 p.a.), the maturity of 10 years and a grace period of four and a half years. These funds are intended to maintain the country's economic program, which aims at restoring fiscal and external stability, reduction of poverty and enhancing economic growth.

The new IMF program for Moldova followed a three-year poverty reduction and growth facility program (PRGF), which was approved by the IMF Executive Board in May 2006 and expired in May 2009.