IMF di­rects Moldova to pro­mote cen­tral bank au­ton­omy

The Pak Banker - - FRONT PAGE -

An In­ter­na­tional Mon­e­tary Fund (IMF) mis­sion led by Ms. Ivanna Vlad­kova-Hol­lar vis­ited Chisinau dur­ing Fe­bru­ary 2329. At the con­clu­sion of the visit, Ms. Ivanna Vlad­ko­vaHol­lar said dis­cus­sions with the au­thor­i­ties were open and con­struc­tive, and fo­cused on as­sess­ing re­cent eco­nomic de­vel­op­ments and un­der­stand­ing the au­thor­i­ties' poli­cies to main­tain macroe­co­nomic sta­bil­ity and im­prove fi­nan­cial sec­tor gov­er­nance.

"The out­look re­mains chal­leng­ing and re­quires skill­ful eco­nomic man­age­ment. "The clo­sure of Banca de Economii, Uni­bank, and Banca So­ciala in late 2015 has stopped the injection of liq­uid­ity in the sys­tem through th­ese banks and, to­gether with a sta­bi­liza­tion of the for­eign ex­change mar­ket and a de­cline in in­fla­tion ex­pec­ta­tions, has al­lowed the Na­tional Bank of Moldova space for a small re­duc­tion in pol­icy in­ter­est rates. None­the­less, fis­cal pol­icy is con­strained in its abil­ity to sup­port do­mes­tic ac­tiv­ity, par­tic­u­larly un­til the new au­thor­i­ties elab­o­rate tax and ex­pen­di­ture poli­cies that would strengthen the ca­pac­ity of bud­get to de­liver on a de­vel­op­men­tal agenda.

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