The International Monetary Fund on Wednesday gave Moldova access to about $27 million, after the crisis lender deemed that Ukraine’s neighbor had taken strong steps on fiscal governance and anti-corruption.
The loan is part of a larger $800 million package that the country can gain access to over 40 months, if it meets certain milestones as determined in an agreement with the IMF. With the funds released Wednesday, the total amount Moldova has received from the IMF now totals around $242 million, reports BSS.
Strains on the government finances of Moldova, one of the poorest nations in Europe, have been stretched even more since Russia invaded its neighbor Ukraine, leading to a surge of refugees as well as knock-on effects such as surging gas and food prices.
“Spillovers from the war in Ukraine continue to weigh on Moldova’s outlook,” said the IMF in a statement Wednesday.
“Moldova’s program implementation remains strong despite the difficult environment, with completion of important program commitments in the areas of fiscal and financial governance, as well as rule of law and anti-corruption,” the IMF added.
A small country of about 2.6 million people wedged between Ukraine and Romania, Moldova was granted candidate status for EU membership in late June.