Moldavia managed to avoid default

Moldavian prime-minister Vasile Tarlev described the information regarding transfer to the national bank of the republic of the first USD 12.5 million tranche of the credit provided by the International Monetary Fund as the significant event important for "every real patriot of the state." The International Monetary Fund and the World Bank suspended financing of the republic in connection with the communists' victory in the February 2001 elections despite the stated readiness of the new authorities to continue the cooperation initiated by their predecessors.

During the present year the threat of default became more than real for Moldavia: it had to return to creditors USD 200 million which equalled 75 % of the revenue part of the budget.

According to the statement made to journalists by the head of the Moldavian cabinet of ministers, "the present event was a positive signal to commence negotiations with the Paris Club to restructure or to write off part of our indebtedness. And the most important thing is that Moldavia managed to avoid default."