IMF Agrees To Increase Financing For Moldova To Face War Impact

The IMF announced an agreement Tuesday to boost an existing financing package for Moldova by $267 million to help the country deal with the fallout from the war in neighboring Ukraine.

The deal reached with IMF staff would provide about $149 million immediately, and add to the 40-month, $558 million program agreed in December. It is subject to approval by the board of the global crisis lender.

“The war in Ukraine has resulted in significant spillovers to the Moldovan economy,” Ruben Atoyan, who led the IMF team, said in a statement.

“This additional financial support will help meet the urgent balance of payments financing needs arising from large adverse shocks, including the war in Ukraine and international sanctions on Russia and Belarus,” he said.

Moldova — one of Europe’s poorest nations — is dealing with an influx of refugees displaced by the fighting, as well as rising food and energy prices that are contributing to a growing budget deficit, the official said.

World Bank President David Malpass earlier Tuesday announced that donors had approved $100 million for the country through the bank’s concessional lending arm.

A donor conference last week in Berlin agreed to provide a total of 659.5 million euros ($720.7 million) in direct financial support.

AFP