Alegerile parlamentare din 2021 în Republica Moldova - alegeri.md
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Activity of the Government on July 21 – August 3, 2003

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Relations with international financial bodies and donors

Last week, the Moldovan Government saw a wave of withdrawals of funding by international financial bodies and donors as a result of its failure to fully accomplish the assumed commitments and its inconsequent policies of taking certain formal measures as required and at the same going for populist measures against the principles of market economy.

Thus, the IMF will not unblock funding to Moldova this autumn as expected, because Moldova has not fulfilled all of its commitments as provided for in the Memorandum on Economic and Financial Policies signed with the IMF, including the introduction of the inspection before expedition and the elimination of certain restriction on exports of ferrous metal waste. The IMF will now re-evaluate the Country Development Strategy agreed in late 2000 to clarify the way in which the Moldovan state defines its role in the economy of the country, after which a new loan scheme for Moldova will be developed.

The World Bank neither will allocate the second SAC-III instalment, for the same reason of Moldova’s failure to abide by its commitments, including the lack of progress in the privatisation of the wine making industry and the reduction of fees on electricity and gas. In addition, the US Agency for International Development (USAID) withdrew its grant offer worth US$ 1,86 million for the energy sector of Moldova. The USAID decision was prompted by the actions of the Moldovan Government that damage Moldova’s image and credibility, such as the governmental decision to merge two autonomous agencies regulating the energy and communications fields and thus politically subordinate them.

While foreign funding has been blocked, which, according to some experts will not be resumed earlier than at least in one year, the Moldovan Government will not be able to restructure loans worth US$ 200 million via the Paris Club and will have to identify alternative sources to the budget to make up for the considerable amounts provided in the 2003 budget from donations.

June 30 – July 20, 2003 August 4–17, 2003