The IMF Plans to Allocate More than $ 400 Million to Moldova. What Kind of Money Is This?

Moldova can receive more than $ 400 million from the International Monetary Fund in early September, a source familiar with the issue of external financing of the country told NM. We are referring to the IMF executive committee's decision, which in early July supported the proposal of the head of the fund, Kristalina Georgieva, to distribute $ 650 billion between the countries. Now,the Board of Governors must approve the distribution. According to the document published on the Fund's website, Moldova is planning to allocate almost 282 million special drawing rights (SDR), which is equivalent to $ 403 million. According to the source, the country will receive this money "without a memorandum, without any conditions." It follows from the report that, for example, Ukraine can receive $ 4.6 billion, and Romania - $ 3.9 billion. According to Georgieva, this is the largest allocation of money in the IMF's history. The funds will be spent to "meet long-term global needs." The head of the IMF stressed that "if the board of directors approves the document on August 2, the distribution of SDRs will be completed by the end of August." "This will serve as a stimulus for the whole world. The distribution of SDRs will increase the liquidity and reserves of all our member states, fuel confidence and serve to enhance sustainability and resilience of the world economy," Georgieva said. As the source explained, a new government being formed in Moldova will start negotiations with the IMF on financing the new program, since the previous authorities did not fulfill the Fund's preconditions for concluding a loan agreement. They related to reinforcing the independence of the National Bank, and increasing supervision in the financial sector and the fiscal system. "The IMF is confident that the new majority in parliament and the new government will act promptly enough, and by the end of the year Moldova will receive a new program and funding for its implementation," the source concluded.