Moldova on financial edge: Government resigned, IMF canceled its visit

The Republic of Moldova, supposedly the poorest European country, is about to face, or maybe it is already facing, a big financial crisis due to the hole made by the situation in the banking system and and due to bad financial government in the last year.

On Friday, June 12th, the Prime-Minister Chiril Gaburici announced his resignation. As he says, he chose to step down due to the suspicions regarding the legality of his studies, but more due to the lack of “political support and power”, not given to him. He blames the political parties from the Parliament: “I needed enough trust and legislative help to change things and to implement reforms. I cannot fake reforms, there is urgent need for concrete actions right now“. At the same time, he declared that his resignation is a step forward for the current majority.

Before his official resignation, on Tuesday, June 16th, Gaburici proposed to the Ministers to vote his last projects, regarding the reforms of the National Committee for Integrity, responsible for politicians’ transparency, and the publication of the owners of all the companies in Moldova. The reforms were rejected by Democrat Ministers, that were claiming that the changes had not been discussed within the parties and that the laws need to be approved by the Parliament.

Supported only by Maia Sandu, the Education Minister, and Vladimir Grosu, the Justice Minister, Chiril Gaburici stepped down to the final stage:

I am sorry, but this is a European initiative! Ok, then let’s go to the 49th point (the resignation).

In only three months of his mandate, former corporation manager Gaburici didn’t manage to do any serious reforms in the state, due to the lack of political power and strengths and his studies scandal.

Government’s inactivity is actively felt in the banking system, where a hole of 1 billion dollars or euros (probably more) was formed after three Moldovan banks had been robbed through nonperforming loans. The financial hole, an eighth of Moldova’s GDP,  and the needs of the banks’ customers are being covered by the state budget. Thus, the budget is getting thinner, and the state is getting into financial collapse, as experts say.

Meanwhile, the European partners are losing their confidence in the so-called European Parliamentary majority, due to severe corruption and lack of a real reforming movement.

Also, the International Monetary Fund announced on June 13th that it won’t do its funding planning visit, so necessary in Moldova’s situation. Furthermore, the representative of the World Bank, Alex Kremer, declared that Moldova won’t receive the promised 45 million euros, now blocked. Reffering to the fact that the bribe in the governmental contracts has risen up to 11% and suggesting that the three bankrupted banks should be erased, Kremer sent a clear message: the financial problems should be fixed immediately in Moldova.

In her last interview for Free Europe, Maia Sandu, the resigning Minister of Moldova Education known for profound reforms, declared that, in the context of the current crisis, the next Government should be filled only by pure “technocrats”.

So be it, Mrs. Sandu.

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