Republic of Moldova: First Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility and Requests for Waiver of Performance Criterion and Augmentation of Access

Author: International Monetary Fund

Volume/Issue: Volume 2007 Issue 045

Publication date: February 2007

ISBN: 9781451825107

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Topics covered in this book

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Banks and Banking , Exports and Imports , Inflation , Economics- Macroeconomics , Money and Monetary Policy , Public Finance , Taxation - General , ISCR , CR , government , staff projection , executive board discussion , Moldova , PRGF arrangement , inflation expectation , poverty reduction program , headline inflation , Tariffs , Fiscal stance , Baltics

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Summary

The First Review Under the Three-Year Arrangement under the Poverty Reduction and Growth Facility of the Republic of Moldova analyzes macroeconomic and structural policy measures to support the adjustment and promote growth. Moldova is facing serious external shocks that will have long-lasting effects. All quantitative performance criteria and indicative targets were met with the exception of the international reserves target, which was missed because of the shocks. Financial sector development is to be promoted by encouraging foreign competition in the banking system.