The fact that a state borrows money from the national banks shows the Government is in a difficult situation and the banks cannot find investment projects that would generate profit adjusted to a higher risk than the one posed by the Government, businessman Vadim Brînzan who settled in the U.S., a former candidate for the post of governor of the National Bank of Moldova, was quoted by IPN as saying in the talk show “Politics of Natalia Morari” produced TV8 channel.
According to him, Moldova’s budget deficit during the past few months exceeded 2 billion lei. “Until last December, the budget was implemented exactly, but in December the budget deficit was of over 1 billion lei. This February the deficit was of about 800 million lei, while in March of approximately 400 million lei,” stated Vadim Brînzan. He noted this happens because the allocations from the social budget, the salary fund increased and half of the citizens work for state institutions.
The businessman said the state has two ways to cover the budget deficit – to borrow money from the development partners or to borrow money from domestic banks. It would be more convenient for Moldova to borrow money from the development partners as these loans are provided for a longer period and the interest rate on them is rather low, even of under 1%. But the Government raises much more expensive loans from national banks.
Vadim Brînzan also said the business environment has worsened considerably. The amounts collected from legal entities as taxes into the budget rose over the past three years and this means the Tax Service practically forces the businesses to leave the underground economy. This would be beneficial if the state protected the entrepreneurs, allowed them to develop and ensured macro-financial and political stability in the country. “This does not yet happen when the businesses that got used to obtaining a particular profit adjusted to risks find themselves in the situation when the risks are the same or increased, while the profit is lower,” stated the businessman.
