Gearing Public Finance to Growth, Employment and Poverty Reduction in Moldova

Abstract

This Country Study examines the role of public finance in supporting a development strategy for Moldova that would accelerate economic growth, generate employment and direct resources towards poverty reduction. Although the government of Moldova has already succeeded admirably in reducing its external debt burden, its fiscal space will remain limited until it is able to refinance its remaining multilateral and bilateral Paris Club debt. In order to do so, it needs greater cooperation from its multilateral and bilateral creditors. Because of its own efforts to reduce its external debt, the government is in a stronger position when it begins negotiations with these creditors.