OREANDA-NEWS. August 21, 2014. This was announced by the Finance Minister Anatolie Arapu in the interview with radio Europa Libera. He reminded that there is no official cooperation program with the IMF in Moldova, and under these conditions our country performs some informal agreements with the Fund regarding macroeconomic and fiscal policy.

The Finance Minister said that the government of Moldova fulfills the IMF recommendations in terms of control over the budget deficit, funding it at the expense of the real sources of control spending, inflation, exchange rate, etc. As InfoMarket previously informed, the previous 3-year IMF program with Moldova, adopted on January 29, 2010 and which expired in April 2013, provided financial support in the total amount of about USD574,4 million, of which Moldova has received USD 490 million.

The last tranche was not allocated to Moldova due to the fact that the country has not fulfilled part of its obligations, and completion of the final review of the program failed. It is planned that the new program of cooperation between the Moldovan authorities and the IMF agree after the parliamentary elections in Moldova in November and the formation of a new government. Previously, the IMF said that Moldova has achieved the main objectives included in the previous economic program supported by the extended credit facility (ECF), the extended Fund facility (EFF), and urged the authorities to deepen structural reforms.

It was emphasized that in 2010-2013 Moldova has showed one of the best economic results in the region, due to the adequate measures of macroeconomic stabilization and ambitious structural reforms implemented since the beginning of the economic crisis in the context of the program supported by the IMF. Moldova's economy strongly recovered after the drought of 2012, but in 2014 it is expected a significant slowdown in economic growth up to 2.25%, as a reflection of the slowdown in the output growth in agriculture and related industries, as well as reduction of economic activity of major trading partners (Russia and Ukraine).

The IMF noted the increased risk to the stability of the financial system due to serious problems with corporate governance in the banking sector, stressing that the capacity of regulatory authorities to take necessary measures have been hampered by the decisions of the constitutional court, which reduced the powers of the National Bank of Moldova and limited independence and efficient functioning of the National Commission for financial market.