Moldova reaches agreement with IMF on three-year Policy Coordination Instrument - PM

CHISINAU. May 20 (Interfax) - Moldova and the International Monetary Fund have reached an agreement on the three-year Policy Coordination Instrument (PCI) without financing previously requested by Chisinau, Prime Minister Alexandru Munteanu announced at a cabinet meeting on Wednesday.

"The government and the IMF have reached an agreement on a new cooperation program for the next three years. Some technical inconsistencies have been overcome and there is a common understanding regarding the reforms, pace and priorities for the next period. For us, it is a clear signal that international partners consider that the Republic of Moldova, first of all, has a professional team, knows what it is doing, is moving in the right direction, at a good pace, even when external circumstances remain very complicated," the government press office quoted him as saying.

He said the program was subject to approval by the IMF Executive Board.

An IMF mission visited Moldova from May 7-20 to discuss the PCI.

Moldova asked the IMF for a new PCI after the IMF terminated the 40-month ECF/EFF program in Moldova in October 2025 - the final tranche of the program amounting to $170 million was not provided to Chisinau due to delays in fulfilling the financial and governance commitments stipulated by the agreement.

The IMF is Moldova's largest creditor, with Chisinau's total debt to the Fund amounting to $1.32 billion or more than a quarter of the country's foreign debt as of the end of March. .

In mid-January, Moldovan Finance Minister Adrian Gavrilita said that "having a [IMF] program is important for the country, but not necessarily for borrowing funds. Last year, as well as this year, by and large, there are enough funds for investment. Borrowing money for current expenditures in the long term would be wrong."

But Gavrilita said at the end of April that the Moldovan government intended to conclude a loan agreement for $400 million with the World Bank in 2026-2027 as part of a program to support sustainable economic growth and reforms.