Following an IMF staff mission to Chișinău, the International Monetary Fund reached a staff-level agreement with Moldova on a new 36-month Policy Coordination Instrument, a non-financing arrangement to support the authorities’ economic policies and reforms. The proposed program is intended to anchor macroeconomic stability, strengthen policy frameworks and advance structural reforms, including measures linked to Moldova’s European Union accession agenda. The agreement comes as Moldova’s economy faces a renewed energy shock that the IMF says is slowing growth and raising inflation in 2026. Real GDP growth is projected to slow to 1.5 percent from 2.4 percent in 2025, average inflation is projected at 8.1 percent, and the current account deficit is expected to widen to 22.1 percent of GDP. Under the program, the authorities aim to reduce the fiscal deficit to 3.5 percent of GDP by 2029 through tax reforms and stronger revenue administration, while public finance reforms will target budget planning, cash and debt management, public investment management and fiscal risk from state-owned enterprises. The program also includes measures to strengthen macroprudential policy, stress testing, regulatory and supervisory frameworks, financial safety nets, financial integrity, protection of public money and the quality and timeliness of economic statistics. The staff-level agreement is subject to IMF Executive Board approval. Based on the mission’s preliminary findings, IMF staff will prepare a report for management approval and then submit it to the Board for discussion and decision.
International Monetary Fund2026-05-20
International Monetary Fund reaches staff-level agreement with Moldova on a new 36 month non-financing Policy Coordination Instrument
The International Monetary Fund reached a staff-level agreement with Moldova on a new 36‑month Policy Coordination Instrument, a non-financing arrangement to support macroeconomic stability, stronger policy frameworks and structural reforms linked to EU accession. The program responds to a renewed energy shock that is slowing growth and raising inflation, and targets a fiscal deficit of 3.5 percent of GDP by 2029 through tax and public finance reforms, plus measures to strengthen macroprudential policy, financial sector oversight, financial integrity and economic statistics. The agreement is subject to IMF Executive Board approval.