Dodon promises thorough analysis of economic situation in Moldova

“In a week or two, I will present a detailed analysis of the economic developments in the country in the seven months to July,“ First Deputy Prime Minister and Minister of Economy and Trade Igor Dodon said, when answering reporters’ questions at the end of Friday’s meeting of the Government, Info-Prim Neo reports. Dodon said the analysis will be a comparative study covering several years. Asked what inheritance the present Government will leave to the future executive body, Dodon said that the statements that the crisis situation in Moldova is the result of the poor administration of the economy made by certain political forces and independent experts generate (...) rhetorical questions – is the present Government responsible for the falls on the international sock exchanges and for the decrease in oil prices last yearend?” As to the recent criticism that the Government issues too many state securities to cover the budget deficit at a time when there is no money to buy them back at maturity, Dodon said that more detailed information will be provided by the Ministry of Finance, which manages this sector. But he ruled out the possibility of repeating Russia’s negative experience with collapsing financial pyramids. “The state securities are an instrument used practically by the governments of all the states experiencing crises (...) A new question appears here: what is better – to lend money from foreign markets at an interest rate of 5-6% or from the home market at an interest rate of 1.9% in Moldovan lei, if we refer to the results of the last auction of state securities. Where are the risks more serious for the Government?” he asked. Dodon added that the relations with the IMF and other development partners should be reestablished as this is important for the economic recovery and for maintaining the level of internal and external payments from the budget. Therefore, the reforms should be extended and there should be promoted relevant amendments to about 50 legislative documents. This should be a major objective for the new Government. “On a short term, the social payments could be maintained at the same level, but on a medium and long term it will be difficult and a new cooperation agreement should be negotiated thus with the IMF,” he said. Dodon also said that the most serious economic decline in Moldova was seen in May this year, but a number of industrial sectors started to recover. He considers that a deflation will be recorded in August as well, which is worrisome as this is a sign of a drastic reduction in consumption. The situation in the coming months could change “if the new government manages correctly the economy hit by crisis,” he said.