The COVID-19 pandemic also hits state-owned companies: many face additional risks of falling revenues and rising debt

Beyond lower revenues, state-owned companies report disrupted supply chains, reduced labour productivity and extra costs since March. Development plans have largely been postponed in favour of financial stability and keeping jobs. Some companies, such as those benefiting from the “Drumuri bune” programme, were not affected.

Almost half of the surveyed companies were not prepared for a crisis: they lacked anti-crisis plans, liquidity reserves or internal governance tools, and boards of directors intervened only formally or not at all. The authors call for the Government to draw up a support strategy without delay. Vadim Gumene notes that measures depend on companies' initial financial health, some, like strengthening cash flow, being quicker than others, like attracting primary investors. Moldova has about 272 state-owned companies, employing six per cent of all employees, with turnover above MDL 23.7 billion.