Imf Suspends Lending To Moldova

14 June 2000

The IMF has suspended lending to Moldova because the parliament has refused to allow the state-run wine and tobacco industries to be privatized. Only 16 members of the 101-seat parliament voted in favour of the measure which would have opened the doors to a $35m IMF loan and $150 from other lenders. Parliamentarians objected to the privatisation on the grounds that these industries are almost the country’s only profitable sectors and are strategic.

The IMF‘s refusal to lend the money could result in non-payment of the country’s foreign debt. The government is also facing increasing pressure from students, state workers and pensioners who have not received their stipends and salaries for months. The IMF representative in Moldova said, “the IMF may reconsider its position by the end of this year, but our conditions remain the same.”