IMF unable to compensate Moldova’s losses from higher gas prices

Itar-Tass) ^ | 17.12.2005

[jb6]

CHISINAU, December 17 (Itar-Tass) -- The International Monetary Fund (IMF) is unable to fully compensate Moldova’s losses resultant from higher prices on Russian natural gas, but it may cushion the effects, IMF mission head Thomas Richardson told a Friday press conference in Chisinau.

He said the Moldovan government had asked the IMF for help. It would be unfair for the IMF to compensate all losses of Moldova, because fuel costs are growing in all countries and consumers should become economical.

At the same time, the IMF will help Moldova with loans, because it is a main task of the Fund to support countries in crisis, Richardson said.

The loans granted to the Moldovan National Bank on preferential terms will compensate the deficit of the balance of payments, he said. The amount of the IMF assistance will be set after an analysis of the Moldovan balance of trade and payments and the amount of the National Bank’s foreign currency reserves. He said he was concerned about the lowering foreign currency reserve of the Moldovan National Bank.

Earlier in the week a Moldovan delegation held negotiations with Russia’s Gazprom gas giant and the sides reached a basic agreement on the supply of natural gas at average European prices starting from next year. The precise price has not been set yet, Moldovan Prime Minister Vasile Tarlev told the press conference.

This year Gazprom supplied 3 billion cubic meters of gas to Moldova at a price of $80 per 1,000 cubic meters. Some of the deliveries were done by Gazexport at a price of $67 per 1,000 cubic meters. Moldova’s debt for Russian natural gas excluding penalties reached $663 million in the middle of this year, including $555 million debt of the Dniester region.

[jb6]

Will the IMF come and help me pay for my gas bill? It's gone up 40% this year alone and looks like another 40% next year.