Prime Minister Ion Chicu said the 2020 state budget deficit is forecast to rise to about 20 billion lei, as opposed to 16 billion lei projected after the last amendments made to the budget. The new forecasts follow the decline in the revenues collected into the budget with the declaring of a state of emergency in the middle of March, IPN reports.
“You remember that the Government offered Parliament to adopt amendments to the budget, with a deficit of 16.2 billion lei. Following the developments, we realized that this figure is also too optimistic. Now we forecast a deficit higher than 20 billion lei, if these diminutions persist,” Premier Chicu stated in a news conference.
He noted that sources for financing this deficit are to be identified or particular costs will be excluded. A sum of 4 billion lei was to be covered with the Russian loan. As the law to ratify the lending agreement was declared unconstitutional, the Russian side was asked to open new negotiations. No response has come yet.
The official said the authorities also bank on the €100 million emergency macro-financial assistance provided by the EU. The first tranche is to be disbursed in June-July, while the second tranche at the end of this year or the start of next year. The Moldovan authorities expect the European Commission to issue the draft memorandum for the first tranche. “We are also looking for other resources, including on the domestic market,” stated Premier Chicu.
As to the macro-financial assistance provided under the memorandum of 2017, the official said he is optimistic that the Republic of Moldova will get the second tranche of €30 million. When the Government was appointed, there were two more conditions that were to be fulfilled for obtaining the second tranche. But the EU put forward eight more conditions. Progress has been made, but he is skeptical about the fulfillment of one of the conditions, the one concerning the law on NGOs. The proposed version is detrimental to Moldova and he would not support it, but a decision is to be taken by the MPs.
