MOLDOVA’S WESTERN-ASSISTED REFORMS REACH POLITICAL CROSSROADS.

Prime Minister Andrei Sangheli, who represented Moldova at the IMF’s annual plenary meeting in Washington and also held talks at the World Bank last week, has reported to his government that donor countries have already pledged $150 million in loans and aid to support Moldovan economic reforms in 1997. Additional "substantial credits" will be forthcoming to support agrarian reform, he added, if Moldova signs the memorandum negotiated with the IMF. Western countries and financial institutions will continue supporting Moldova’s reforms if the country stays that course, Sangheli said in his report made public yesterday. (Moldova Suverana, October 8, cited by Flux and Basapress)

The IMF, World Bank, and Paris Club have praised Moldova’s performance in carrying out the first stages of economic reforms, promoted in consensus by top Moldovan leaders and the governing Agrarian Democratic party. Since last year, however, President Mircea Snegur has fractured the pro-reform consensus by demanding that parliament and the government finance social programs and meet wage claims. He has also encouraged certain trade unions to advance such inflationary demands against an empty treasury. Snegur faces a strong challenge from Sangheli and parliament chairman Petru Lucinschi in the upcoming presidential election.

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