Government fails to pay debts to National Bank in October

The Government interrupted payments to the National Bank of Moldova in October concerning the debts previously contracted, after it paid MDL 60 mln in September. As a result, the debts of the state to the central bank remain at the level of MDL 2 bln 521 mln. Since the beginning of 2006, the Government reduced its debts to NBM by MDL 90 mln. In order to comply with monetary Policy it has to pay MDL 29 mln more by the end of the year. The data provided by the National Bank show that during November, the interest for the credits contracted in the previous years – MDL 2 bln 121 mln, has slightly increased, by 0.04 percentage points, and in September it has reduced by 0.27 percentage points. On the other hand, the interest applied for MDL 400 mln – bonds (HVS) obtained in the portfolio of NBM as a result of the conversion of loans previously provided to the state – went up by 0.14 percentage points during October. In September, the rate of the interest for these HVS diminished by 1.23 percentage points. Since the beginning of the year, the Government did not contract any new credits from the National Bank, the monetary and currency policy for 2006 stipulates reducing the debt of the Government to NBM to the level of MDL 2 bln 492.2 mln.