Moldova Misses Out on MDL 3 Billion as External Donors Freeze Funding

The country has no access to international credit markets, so it cannot replace the missing external funds, while domestic borrowing has become costlier: the weighted average rate on government securities in the primary market reached 16.63% in the first six months of 2015, against 5.5% at the start of 2014. A similar spending freeze occurred in 2009, when 20% of expenditure was blocked.

Expert-Grup urges abandoning the idea of self-isolation, giving the new Government a clear mandate to negotiate a new IMF agreement, and drawing up a two-year anti-crisis plan based on the February 2015 policy notes. Veaceslav Negruță calls the 2015 budget revision the “number one priority”. The analysis also proposes removing off-shore companies from contracts involving public money, to aid fiscal consolidation.