Republic of Moldova: Second Reviews Under the Extended Credit Facility and Extended Fund Facility Arrangements, and Request for Waiver of Applicability for Performance Criteria-Press Release; Staff Report; and Statement by the Executive Director for Republic of Moldova

International Monetary Fund

No 2023/006, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper discusses Republic of Moldova’s Second Reviews under the Extended Credit Facility and Extended Fund Facility Arrangements, and Request for Waiver of Applicability for Performance Criteria. Spillovers from Russia’s invasion of Ukraine continue to weigh heavily on Moldova, with disruptions of energy supply putting additional pressure on the Moldovan economy. The IMF-supported program has helped catalyze significant external financing to help Moldova bridge immediate financing needs. As risks remain high and the outlook is subject to extreme uncertainty, maintaining a strong policy momentum will be critical to secure additional grant and concessional financing from donors, needed to withstand the shocks, reduce reliance on expensive short-term domestic financing, and preserve fiscal sustainability. The authorities’ near-term policy priorities are appropriately focused on safeguarding energy security, protecting the most vulnerable from the cost-of-living crisis, and preserving macrofinancial stability. Going forward, maintaining an appropriate policy mix will be critical to withstand downside risks, should they materialize, while pursuing longer term developmental objectives.

Keywords: inflation consultation clause; program implementation; Policy discussion; anchor inflation expectation; General government budget; policy effectiveness; Energy prices; Credit; Inflation; Europe; Global; Eastern Europe (search for similar items in EconPapers)
Pages: 111
Date: 2023-01-12
New Economics Papers: this item is included in nep-cis
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=528078 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2023/006

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().