OREANDA-NEWS. On July 14, 2008 as it was informed in the press service of the Government of Moldova, IMF has approved the fourth PRGF review.

As it was informed before, the fourth review should have been approved on July 16 during the meeting of IMF’s Directors Board. At the same time, due to the fact that Moldova has fulfilled all obligations stipulated in IMF Memorandum of Economic and Financial Policy, the fund has decided to approve the fourth PRGF review.

The funds will be used for increasing currency reserves of Moldova. In the result of allocating the next tranche, the total amount allocated within PRGF program will make USD 143 million. As of June 30, 2008, NBM currency reserves amounted to USD 1, 526 billion.

The main target of IMF programme is to ensure macroeconomic stabilization, and to achieve the annual inflation level below 10%. According to the National Bureau of Statistics of Moldova, in June, the deflation of 1.1%, which allowed reducing inflation up to 15.6% since the beginning of the year, was registered. PRGF is IMF concessional lending mechanism for the low-income countries.

Loans under PRGF are provided at the annual rate of 0.5 percent for 10 year-period with the grace period of 5.5 years. The loan provided to Moldova will make about 174 million U.S. dollars. The PRGF program will last till May 2009.