Tags: EU | Moldova | IMF

IMF Says New Loan for Moldova Won't Materialize During Visit

Tuesday, 22 September 2015 02:06 PM EDT

CHISINAU, Moldova (AP) — The International Monetary Fund says it will not negotiate a new loan program with Moldova during its visit to the country, dashing the government's hopes of an immediate agreement to help cover pensions and salaries.

An IMF mission began the two-week visit Tuesday, a day after Moldova's central bank governor Dorin Dragutanu resigned following weeks of street protests over $1.5 billion that disappeared from three Moldovan banks before parliamentary elections in November last year.

In a statement, the IMF said it is visiting for consultations and to "initiate discussions" that could later form a basis for a program.

Moldovan Prime Minister Valeriu Strelet had hoped for more advanced negotiations for an agreement, saying the pro-European government needs a loan to help pay salaries and pensions.

However, an offer came from Romania Tuesday when Prime Minister Victor Ponta said Romania could grant Moldova a 150 million euro ($168 million) five-year loan. The proposal, made during a joint government meeting, needs to be approved by Romania's parliament.

"I think it is the duty and within the power of Romania to make this offer at a difficult moment," Ponta said.

Moldova was part of Romania until 1940 and Romanian is spoken in both countries.

© Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Europe
The International Monetary Fund says it will not negotiate a new loan program with Moldova during its visit to the country, dashing the government's hopes of an immediate agreement to help cover pensions and salaries.An IMF mission began the two-week visit Tuesday, a day...
EU,Moldova,IMF
204
2015-06-22
Tuesday, 22 September 2015 02:06 PM
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