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The
IMF and the ex-Soviet country agreed in November a three-year
loan program worth $178.7 million, after negotiations had
earlier been disrupted by a $1 billion corruption scandal that
plunged the country into turmoil.
The IMF praised measures taken by the Moldovan authorities since
then to stabilize the economy, which is forecast to grow 4.5
percent in 2017.
"The program is broadly on track, enjoys strong country
ownership, and is supported by the firm commitment of
policymakers to sound economic management," the IMF said in a
statement late on Monday.
"The authorities continue to make significant progress in
tackling long-standing vulnerabilities in the financial sector
and advancing structural reforms."
In 2015 Moldova's negotiations with the IMF and the European
Union on funding were disrupted by the disappearance of the
equivalent of one eighth of national output from Moldova's
banking system, which triggered an economic and political
crisis.
The shock to the banking sector caused the economy to shrink 0.5
percent in 2015, although it returned to growth in 2016,
expanding 4.1 percent.
The IMF said the Moldovan government's priorities for 2017
should include strengthening revenues and implementing
structural fiscal reforms.
If Moldova sticks to the IMF program, the loan will continue to
be disbursed in tranches based on semi-annual reviews.
(Reporting by Alexander Tanas; Writing by Alessandra Prentice;
Editing by Susan Fenton)
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