Government Activity Programme 2006 implementation results publicized by Government

Government Press Service publicized the results of implementing in 2006 the Government Activity Programme “State modernization – welfare of the people”. The text of a Report of the Prime Minister Vasile Tarlev was sent for dissemination, after the Prime Minister failed to read it in the Parliament’s sitting on Friday, December 22. According to the document, the main components of the Government’s activity programme are in the centre of attention in order to ensure their complete realization in a professional and efficient way. These components are the Economic Growth and Poverty Reduction Strategy Paper (EGPRSP), EU-Moldova Action Programme, “Moldovan Village” National. In the reporting period, the development of national economy has been affected by the negative impact of some factors, first of all external ones, on certain macroeconomic indicators and economic sectors, as the foreign trade, industry and transportation. The government considers that, in spite of these impediments, the evolution of economic and social indicators confirm the maintenance of macroeconomic stability and the gradual improvement of the population’s living standards in 2006. According to him, the gross domestic product according to the preliminary data, constituted MDL 29.8 bln in January to September, in comparable prices increasing by 4.6% compared to the same period of 2005. In January to November, the inflation rate represented 12.7% compared to December 2005. The national currency exchange rate in this period marked a 3.1% devaluation against the US Dollar. In 10 months of the current year, the credit balance in economy rose by 35.2% compared to the respective period of 2005, totalling MDL 12.6 bln, and by 26.2% compared to the level at the beginning of the year. The Government appreciates that the obtained results prove the capacity of the Moldovan Government to avoid the destabilization of the situation, the sudden reduction of economic growth or the failure to execute internal and foreign obligations. According to the operative data, about MDL 15.7 bln have been accumulated to the National public budget, marking a 22.7% increase compared to the similar period of the last year. The state external debt administrated by the Government constituted USD 663.7 mln on October 31, 2006, a reduction of USD 117 mln being registered to the situation at the same date of 2000. USD 638.9 mln from these are direct debts and USD 24.8 mln – guaranteed debts. The share of debts in the GDP reduced from 60.4% in 2000 to that of 24% in this year. The government also informs that positive results have been achieved in dome economic sectors. According to the situation at the end of September, the volume of investments in fixed capital exceeded MDL 5 bln, increasing by 16.9 % compared to January-September 2005. In the period from January to October 2006, the volume of contract works executed raised by 21 % compared to the respective period of 2005. A special event for the country’s economy was the putting into operation of the Giurgiulesti oil terminal. A particular attention is paid to the construction of living houses. Till the end of the year, about 10142 houses will be put into operation, which is by 60% more than in 2005. The volume of retail sales also rose. Only in the organized trade network, the volume has grown, in comparable prices, by 10.2 % totalling MDL 10,915 mln. A turnover of MDL 6,488 mln, or by 5.6 % more compared to January-October, resulted in the mentioned period from providing paid services to the population, the report mentions. Other aspects included in the report will be presented by the “Info-Prim Neo” Agency later. The Speaker of the Parliament Marian Lupu suspended the presentation of the report by the PM Vasile Tarlev in the legislative’s session, as a response to the protests organized in the session hall by several MPs from the opposition. In turn, the MPs explained their behaviour with the refusal of the communist and Christian Democrat majority to create a commission, which would examine the situation of the municipal stations “Antena C” and “Euro TV Chisinau”.