The National Confederation of Employers of Moldova (CNPM) calls on the competent authorities to take immediate measures to stop the devaluation of the national currency. According to the employers, the devaluation has a negative effect and will lead to economic stagnation and higher prices.
In a news conference at IPN, CNPM chairman Leonid Cerescu said the employers are deeply concerned about the continuous devaluation of the national currency. During only a year and a half, the Moldovan leu was devalued by about 20% against the euro and by 17% against the dollar.
According to Leonid Cerescu, this devaluation is provoked artificially, with the tacit consent of the National Bank of Moldova. The negative effects are multiple. Moldova, which depends considerably on imported goods that are not made in the country, already has to pay for them by about 20% more.
The CNPM chairman also said that the Moldovan companies with devalued assets and circulating capital cannot cope with competition and many of them have to close down or to migrate to the underground economy, or to pay salaries illegally and to avoid paying taxes.
CNPM first deputy chairman Alexandru Slusari said that owing to this devaluation, the agricultural producers sustained losses of 200 million lei when purchasing diesel fuel alone. The prices of diesel fuel, fertilizers and spare parts went up, but these things are all very important. “After the harvest, we must continue the process of modernizing this area, but, with such currency policy, the process is jeopardized,” he stated.
The Confederation’s deputy chairman Igor Crapivca said that owing to the devaluation of the leu, the real incomes of companies diminish and inflation affects their purchasing power. The situation of companies that took out loans in foreign currency and of local producers oriented to the home market, who have to purchase raw material from abroad, is very serious.
The CNPM’s statement, by which the authorities are requested to take measures to remedy the situation, was submitted to the Government, Parliament, and the National Bank of Moldova.
