Ex-vice premier Alexandru Muravschi plays down impact of remittances

It's not the case to blame the remittances for everything, to say they increase the domestic consumption, and consequently – the exchange rate deviations and the inflation. The earnings sent by the Moldovan working abroad is an important source of economic development. The opinion belongs to Doctor of Economy Alexandru Muravschi, former deputy premier and minister of economy, Info-Prim Neo reports. Considering the total amount of the foreign earnings – over $2 billion –- sent only thought the banking system, neglecting the money sent through friends – every family would rest with some $2-3 thousand, the expert told journalists. The money is not used only for consumption, but also for education, which can be considered a long-term investment. They also invest in buying dwellings, and thus they indirectly stimulate the building materials sector. We find many remittances in bank accounts. They are nothing but crediting resources, investment means. The problem is that these resources are partially steered to credit imports. But it's not the remittances' fault here, the Government has also to review its policies, to identify levers to re-orient the investments from commerce to production, Alexandru Muravschi believes. “This year we're going to reach $2 billion as direct foreign investments. Where do they, or most of them, go? In services, including banks and trade, but not in developing production facilities. The amount of investments is up, but the production is not modernizing,” the expert states. “Certainly we shouldn't expect big results only by saying: “OK, pals, come home and and start businesses. You're not going to make big business with $2-3 thousand, even with $10,000. Why then shan't we use the securities market or other instruments of the financial market to lure this money?”. The expert suggests the foreign workers could buy some stocks in Moldtelecom or in the Railway Company.