Moldova's new coalition hopes for financial aid from abroad
The new ruling coalition in Moldova is counting on financial assistance from foreign creditors, the leaders of the four parties that make up the coalition - the Liberal Democratic Party, the Liberal Party, the Democratic Party and Our Moldova Alliance - told the ProTV Chisinau TV channel on 8 August.
The chairman of the Democratic Party and ex-speaker, Marian Lupu, confirmed that prior to setting up the coalition, leaders of the four parties met foreign creditors and exchanged opinions on the financial and economic situation in Moldova.
Lupu voiced concern over the fact that in order to preserve stability in the social sector, the Moldovan authorities applied financial methods "which provide for a short-term solution, but are dangerous in the long-term".
Among those methods, he named the reduction in the minimum mandatory reserves by the Moldovan National Bank. Lupu said this meant the liquidity that should have supported the economy top up the budget through sales of the state securities. Lupu said that this made it possible to top up the budget with 600m lei [about 53m dollars] over the last two months. He believes that this is a time bomb. In September-October [2009] there could occur problems with payment of pensions and wages. "It will be possible to overcome this problems only with support from foreign investors," Lupu added.
The leader of the Liberal Democratic Party, Vlad Filat, said that due to lack of money, the Communist authorities forced many companies to pay taxes in advance in recent months. He said that as a result of errors in the budget and economic policy, by the end of the year the budget deficit might reach 6bn lei, which is almost a third of the state budget.
"We discussed opportunities for funding the budget deficit with foreign creditors. They are ready not only to back us in this regard, but to help in launching the processes of growth in the real sector of the economy," Filat said.
Infotag
- Moldova gets financial support from the UN for 2013-2017
- Sweden to grant Moldova 52 million euros in financial assistance
- EU Council to mandate launch of talks on deep free trade area with Moldova
- Moldovan cabinet amends mechanism for paying salaries to state enterprises' managers
- Moldovan premier meets experts from U.S. Department of Energy
- Moldovan premier says financial shortage should not hinder healthcare reform
- IMF says Moldova speeds up economic restoration process
- Moldovan premier seeks efficient solutions to secure reasonable prices
- Moldovan government to monitor increase in prices
- Government fails to achieve expected results from privatization
- Asia, US helps Mercedes Benz sales hit record high in 2006
- Cricova: The Largest Underground Wine Cellar in the World
- What does Remortgage mean?
- Dutch bear profit rises 26 percent
- Foreign direct investment in India doubles during 2006
- Greece: Socialist government's budget deficit of 12.5% caused debt crisis
- Toyota in talks to build new China plant
- Walt Disney profit up 39 percent
- DaimlerChrysler is not planning to manufacture trucks in India