Moldova needs to restore the trust with IMF after the corruption scandals

Pavel Filip, prime minister of Moldova
Pavel Filip, prime minister of Moldova

Moldova should do its best to restore the International Monetary Fund’s trust, Moldovan Prime Minister Pavel Filip told journalists, according to TASS Agency.

A political crisis that broke out in Moldova back in 2013 forced the country to break all cooperation with the IMF. An IMF delegation, now on a visit to Chisinau, may help restoring the severed ties.

“Moldova needs a new memorandum with the IMF,” Filip said. He believes the memorandum will unfreeze the EU financial aid to Moldova and will help the republic to receive a promised credit from Romania.

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According to Filip, the IMF will analyze the visit’s results to decide if negotiations for a new cooperation program should start with Moldova.

Filip said the Moldovan authorities were planning to verify the 2016 budget, which he describes as balanced, with the IMF experts. The government is planning to use the funds promised by Western donors for covering the existing budget deficit.

“If we want to see the financing unfrozen, it is necessary to demonstrate our true desire to change the situation in the country,” Filip went on to say.

Moldova found itself in an economic plight after the European Union and the World Bank had accused the local authorities of corruption and halted financial aid to the republic. As a result, Moldova had to resort to austerity measures.

The IMF special mission with a mandate for negotiations paid several visits to Chisinau in 2015. However, the talks have never started first due to the resignation of Premier Chiril Gaburici (Liberal Democratic Party) in June. Dorin Dragutanu, the governor of Moldova’s National Bank, was dismissed in September, and the government of Valeriu Strelet collapsed in October 2015.

Moldova hit by high-profile corruption scandals was on the brink of a new political crisis late last year after its ruling Alliance for European Integration had fallen apart. The alliance comprised Democrats, Liberal Democrats and Liberals. The Democrats merged with the Liberals and defectors from other parliamentary factions to form a new parliamentary majority.

The opposition factions, however, claim they had acted through blackmail and graft. They do not recognize the incumbent government of Premier Pavel Filip; demand early parliamentary elections and direct election of the country’s president. Opposition rallies attended by thousands of people have embraced Moldova.