Moldova and IMF Strike New Non-Financing Deal to Support Economic Reforms
Details and Implications of the Moldova-IMF Agreement
Announcement of the New Policy Coordination Instrument
CHISINAU, May 20 (Reuters) - Moldova and the International Monetary Fund have reached a new non-financing agreement on a three-year cooperation programme, Moldovan Prime Minister Alexandru Munteanu said on Wednesday.
Purpose and Structure of the Agreement
The Policy Coordination Instrument does not involve a financial component and is designed to assist the country in developing and implementing structural reforms, ensuring macroeconomic stability, preventing crises and attracting financial assistance from other sources.
Next Steps for Implementation
Munteanu said the next step would be the approval of the agreement by the IMF's Executive Board.
Economic Context and Challenges
A statement issued by the IMF said Moldova’s economy had rebounded in 2025 but energy shocks, produced in part by the war in the Middle East, were weighing on growth and inflation.
The mission said GDP growth was expected to slow to 1.5% this year from 2.4% in 2025 and average annual inflation was forecast to hit 8.1%.
Objectives of the Policy Coordination Instrument
The statement said the PCI would "help anchor macroeconomic stability amid continued global uncertainty, strengthen policy frameworks, and advance structural reforms to foster more sustainable and inclusive growth". It would also bolster Moldova’s bid to secure European Union membership by 2030.
Risks and External Factors
"Moldova’s outlook is highly dependent on the duration and intensity of the war in the Middle East, as well as the war in Ukraine," mission head Alina Iancu said in the statement.
"Persistently high energy costs could lead to sustained inflationary pressures, while disruptions in fertiliser and fuel markets could adversely affect agricultural output...These shocks could further weaken growth and widen external imbalances."
Reporting Credits
(Reporting by Alexander Tanas, writing by Anna Pruchnicka; Editing by Aidan Lewis, Ron Popeski and Sanjeev Miglani)
