IMF to give Moldova access to $27 mln to cope with rising costs

The loan comes as part of a larger, $800 million package that could be disbursed to Moldova if the country improves its fiscal governance and implements, among others, anti-corruption reforms. The IMF said that despite the impact from Russia's invasion of Ukraine and the surging costs that will continue to see the economy stagnate in the near term, the government has made progress in reforms.

The International Monetary Fund said late on Wednesday that it will provide Moldova with access to $27 million to help Chisinau with the impact of the war in Ukraine and rising food and energy prices. The loan comes as part of a larger, $800 million package that could be disbursed to Moldova if the country improves its fiscal governance and implements, among others, anti-corruption reforms.

The IMF said that despite the impact from Russia's invasion of Ukraine and the surging costs that will continue to see the economy stagnate in the near term, the government has made progress in reforms. "They (the government) have successfully completed structural commitments on fiscal governance, financial sector oversight, and on strengthening anti-corruption legislation, and even included additional conditionality to support the fiscal structural agenda," the IMF said in a statement.

"Maintaining this strong policy momentum will be critical to secure an additional grant." The country of 2.6 million lies between Ukraine and Romania and has seen thousands of Ukrainian refugees make it their home since the start of the Russian invasion in February.

In June, Moldova was granted candidate status for European Union membership.