In order to resume talks with the international community regarding new cooperation programs, Moldova needs to expedite structural and market-oriented reforms

In order to resume talks with the international community regarding new cooperation programs, Moldova needs to expedite structural and market-oriented reforms, according to a report on the economic situation in Moldova delivered by IMF experts after visiting the country in late 2003. The experts believe that, to date, Moldovan structural reforms have been slack, as last year there were no improvement of the business climate. Among indicators that triggered the IMF's greatest concerns were inflation growth, a rise in the deficit of the balance of trade, problems with servicing foreign debts as well as cuts in direct foreign investments. The program on cooperation between the IMF and Moldova was terminated in December 2003. The IMF's decision to terminate the program ahead of schedule was made in late July 2003. According to IMF experts, the termination of the program was due to the fact that the Moldovan government failed to meet all requirements that were agreed upon with the IMF earlier.