Govt. to develop crisis program to support real sector

The Moldovan Government will develop a program to support the real sector of economy. The idea was announced by deputy premier Igor Dodon at the meeting with representatives of the Moldovan Employers Confederation, Info-Prim Neo reports. According to the Economy and Trade Minister, the impact of the world financial crisis over the Moldovan real sector could be larger than previously expected. “No reasons for concern are there in the banking sector. At least for now. But the real sector has domains which already feel the aftereffects. The question is about constructions, light industry (textiles), the export of produce also seems to be threatened, because of lower demand on the sales markets, especially the Russian market,” Dodon pointed out. He says it is important to apply a plan of measures to diminish, as much as possible, the first consequences of the crisis, not allow their getting worse. The first deputy prime-minister says the Government has launched or is planning to do so some of those measures. He mentioned the maintenance of the leu's exchange rate, now allowing its excessive fluctuation, what strikes the exporters first, and triggers panic within society. The economy should be ready to receive the people coming home from abroad as the number of jobs there is dropping especially in constrictions, transportation, services. Dodon say the Government will launch a number of programs in 2009 similar to the one pursuing to support the young entrepreneurs. They will target not only the youth, but the entrepreneurs of any age willing to start their businesses. The state will offer them consulting and grants. Dodon mentioned the state needed to trigger enhanced demand on the markets of building materials, jobs, transport services. It can be done by launching huge infrastructure projects. Several projects of this kind will be launched right in the beginning of the year: three roads will be built Chisinau - Hancesti, Chisinau- Orhei and Orhei - Balti (European Roads Project funded by several international donors and the Government), the airport revamp project worth 45 million euros. In addition some a number of projects on building water supply and sewage systems part of a project funded by the World Bank, as new projects are now being identified. Igor Dodon says the Cabinet is trying to seek a way to back the Moldovan producers. “The income tax is 0 anyway, we don't have a stability fund as Russia, so what can be done? How shall we support the local producers in these hard times? We warned them to be careful with the transactions on the eastern markets. We thought to set aside a part of the incomes from the privatizations and to pay the interests of companies or to give them loans directly. Still, it's but an idea that I try to elaborate,” Dodon. El assesses the losses of the Moldovan economy may rise to 25- 30 % next year, comprising the losses due to the partial halt of some investments, especially the ones coming from the eastern countries, a lowering demand for Moldovan goods also more on the eastern markets and, possibly, a drop in the budget incomes.