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Category: Point of View
Moldova’s gross external debt increased in the first quarter of 2025 by 3% (+$303.82 million) and amounted to $10,517.15 million, which is 57.4% of GDP (+1.3 p.p. since the beginning of the year). The rate of external debt accumulation is still inferior to the rate of domestic borrowings – they are at least twice as fast, although they still account for about 40% of the total government debt.
Now everyone is already preparing for the parliamentary elections scheduled for September 28. In this context, any serious discussion about the country’s development paths, the state of Moldova’s economy, the necessary radical and comprehensive measures to radically break the established state system, which is already completely rotten and shows its insolvency, are perceived exclusively through the prism of the political context and the upcoming elections.
Foreign trade statistics indicates a significant decline in export revenues. And the structure of demand for foreign currency on the part of business demonstrates an increasingly pronounced gap with import dynamics, analysts of the National Bank record. According to their estimates, the current account deficit in the first quarter shows more than twofold increase on paper. In life, it has to be “covered” with something.
The low level of utilization of external loans for the implementation of investment projects continues to be a major problem. Having conducted an audit of public debt management, the Accounting Chamber noted underutilization of credit resources in the fulfillment of debt repayment obligations. Thus, for 12 projects with a low level of utilization, the state nevertheless paid interest and commissions in the amount of about 4.6 million euros.
In the first half of 2025, the Court of Accounts of the Republic of Moldova has found, based on the results of inspections, violations that may indicate fraud and corruption in central institutions and local authorities. Based on reasonable suspicions, 11 packages of documents were sent to the prosecutor’s office for further investigation.
The Court of Accounts of Moldova has completed an external audit of ministerial reports on the responsible management of state assets in 2024. Overall, the financial discipline of the executive bodies of the central government is far from perfect.
Any future government in Moldova will have a very unenviable inheritance. The pre-election package should mainly focus on two priority areas: the institutions of power and governance – their functionality and efficiency; and the economy – viability and financial sustainability at the micro and macro levels. Reform of the state – whose institutions show signs associated with insolvency and inefficiency, the consequence of which is prolonged stagnation and poverty – is crucial and can never be delayed.
This week, the government approved a single package of amendments to a number of laws establishing standards of activity on the financial and capital markets. Consumers of financial services will receive real protection: the powers of the National Commission for Financial Market (NCFM) will be expanded.
Are you quietly perplexed when account maintenance in different banks is called differently? When a free pension or social security account is debited every month? When transactions are priced ahead of other countries’ payment systems? You are not alone…
Moldova is experiencing a changing migration pattern due to various factors, including economic and social conditions. The main trends include population decline, outflow of young people and increase in internal migration.
Valeriu Chitan devoted his professional career to public finance, passing through all levels of the service hierarchy: from economist to Minister of Finance.
The United Nations has identified the causes of the world’s falling birth rate. The answer lies in the freedom of reproductive choice, which only economic stability, decent health and confidence in the future provide, not today’s access to services. Many people are deprived of this choice, and Moldova is no exception.
