Moldova Begins Negotiations with IMF on a New Credit Program

Moldova initiated negotiations with the International Monetary Fund (IMF) on a new credit program for the next three years. According to the press service of the government, today, July 7, the first meeting was held online, which was attended by Prime Minister Ion Chicu, head of the National Bank Octavian Armasu, as well as an IMF expert group led by Ruben Atoyan. “During the next two weeks, the IMF mission will negotiate with the Moldovan authorities on a new three-year credit program,” the office said. The loan under the program is estimated at $ 550 million. The money will be allocated to support the budget, as well as to fill the state currency reserves. In September, the IMF board will examine the document. Recall that in April the IMF board of directors approved an emergency loan for Moldova in the amount of about $ 235 million. The money was used in the fight against the coronavirus and the pandemic aftermath. At a parliament meeting on April 23, MPs voted in two readings to ratify credit agreements with the IMF. Moldova will receive a loan of about $ 156 million under the Rapid Financing Instrument. The interest rate will be 1.5%, the grace period will last 3 years and 3 months, and the payment period will be 1 year and 9 months. The loan repayment term is 5 years. Moldova will also pay a one-time commission - 0.5% of the amount of an emergency loan. The second component of the IMF loan will be $ 78 million. The interest rate is 0%, and the grace period is 5 years and 6 months. The loan repayment term is 10 years.