The Government has also introduced a package of strong measures to address the problems of the energy sector and reduce the risk of any further buildup of external arrears. Several measures are also planned to establish a market-based agricultural sector, including the introduction of trading in agricultural land. The Government will restructure the social safety net through a consolidation of programs into a well-targeted system of old age pensions, unemployment benefits, and income transfers for the poor. The Challenge Ahead Moldova has now largely achieved financial stabilization and has made progress in its transformation to a market economy. The challenge now is to build upon these gains, while maintaining financial stability, thus setting the stage for faster growth and higher living standards.
Substantial work remains to be done, especially in accelerating the pace of structural reforms.
A continued failure to impose financial discipline on the state enterprises and break the chain of arrears could undermine the progress already been achieved toward financial stabilization. The EFF is an IMF financing facility that supports medium-term programs that seek to overcome structured balance of payments maladjustments. A program generally lasts for three years, although it may be lengthened to four years. A member's quota in the IMF determines, in particular, the amount of its subscription, its voting weight, its access to IMF financing, and its allocation of SDRs.