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Moldova Seals Staff-Level IMF Deal in Wake of $1 Billion Fraud

  • Prime Minister Filip pledges in interview to continue reforms
  • Government to start state-asset sale program in autumn

Moldova reached a staff-level agreement with the International Monetary Fund following months of negotiations as the former Soviet republic looks to stabilize its economy after $1 billion was stolen from its banking system last year, Prime Minister Pavel Filip said.

Europe’s poorest country, left on the verge of bankruptcy by the fraud, pledged to continue reforms, such as strengthening the financial industry and the central bank, improving the judiciary and fighting corruption, Filip said in an interview. The IMF and Moldova clinched a preliminary accord for a loan of about $179 million, according to a statement published on the lender’s website late on Tuesday. The deal must be approved by the IMF’s board later this year.