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.
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