IMF and World Bank stop lending to the Republic of Moldova

The International Monetary Fund and the World Bank have halted their lending to the Republic of Moldova, and the European Union could stop financing the judicial reform, because of the country’s failure to fulfill its commitments. Under these circumstances, the country could default on its debt in maximum eight weeks, according to Deutsche Welle, reports local Economica.net. A month ago, IMF said that it would resume lending in Moldova only if the state liquidated the three banks that were involved in the theft of billions of dollars from the country’s banking system. However, the Government decided the opposite, namely to start the procedure of nationalizing the lender Banca de Economii. IMF suspended negotiations with Moldova. Alex Kremer, World Bank director for Moldova, announced that the institution would freeze its relationship with Moldova. This means that the country will not receive the EUR 45 million budget support for 2015. editor@romania-insider.com