Vasile Tofan, message to the IMF: Economic growth should not be fueled by unsustainable budget spending. The government is counting on investments, reforms and privatizations

The Republic of Moldova aims to accelerate economic development by attracting investments, reducing obstacles to the business environment and making state-owned enterprises more efficient, including through privatization where appropriate. The priorities were presented by Prime Minister Vasile Tofan during a meeting with the International Monetary Fund (IMF) delegation, which is on a working mission in Chisinau. The Head of the Executive stressed that the Government is pursuing sustainable economic growth, without resorting to unsustainable increases in public spending, and advocated maintaining fiscal discipline, according to a Government statement.

The meeting took place on Thursday, October 22, with the participation of the IMF expert team led by Alina Iancu, who is paying a working visit to the Republic of Moldova from October 21-28.

The discussions focused on the current economic situation and macroeconomic prospects, as well as the Government's priorities in terms of fiscal policy, public finance management and structural reforms. The meeting's agenda also included challenges in the energy sector, social protection measures and possibilities for stimulating investments.

The Prime Minister reaffirmed the Executive's commitment to maintaining macroeconomic stability and creating favorable conditions for economic development, insisting on the need to correlate reforms with responsible management of public funds.

"We are counting on sustainable economic growth, based on investments, the elimination of barriers to business, the stimulation of entrepreneurship and competition, the increase in productivity and the efficiency of state-owned enterprises, including through privatization where appropriate. Not on growth fueled mainly by unsustainable budget expenditures. Fiscal discipline and economic development must go hand in hand", mentioned Prime Minister Vasile Tofan.

In turn, the head of the IMF mission, Alina Iancu, expressed her willingness to continue consultations with the new government team and to identify areas in which the international financial institution can provide support.

"We are pleased to have this opportunity to dialogue with the new Government, to discuss economic policy priorities and reforms, as well as how the IMF can provide further support", said Alina Iancu.

At the end of the meeting, representatives of the Government and the IMF agreed to continue cooperation and exchange of expertise in areas considered priority for the economic development of the Republic of Moldova.