MOLDOVA
Renewed financial assistance expected from IMF
On 18 June, the International Monetary Fund (IMF) declared that it will
resume financial assistance in the amount of $28 million to Moldova in October
1998, if Moldova shows signs of economic improvement in the financial, agricultural,
and energy sectors. Prime Minister Ion Ciubuc stated that a harsh fiscal
policy will be implemented for the next three months in order to meet the
requirements put forth by the IMF. The promised loan is another installment
from a total of $190 million which the organization agreed to appropriate
to Moldova. (Basapress, 1910 GMT, 18 Jun 98; FBIS-SOV-98-169) In addition,
the World Bank signed a credit agreement with Moldova on 23 June in which
a program for further privatization of land and development of real estate
was drafted. (Infotag, 1730 GMT, 23 Jun 98; FBIS-SOV-98-174) These agreements
follow the installation of the new parliament in April and the selection
of a new cabinet in June. Most importantly, they constitute a positive step
towards building international organizations' confidence in Moldova's economic
recovery.