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Category: Point of View
With heightened uncertainty, policymakers in emerging economies will be forced to make difficult trade-offs between high debt, slowing growth and new spending needs, the IMF said in a blog on economic policy adjustment.
Moldova’s specialists will be able to develop more accurate forecasts of the energy sector’s development and its impact on climate change. This was reported by the Ministry of Energy, noting that the agency’s energy forecasting specialists received practical training at a July 29-30 workshop on a new energy system modeling tool developed with OSCE support.
Moldova’s new debts overlapped the old ones. And the external public debt increased by a third during the year. And the total debt of the state, thanks to this, has significantly gained weight. The weakening of the national currency, despite the NBM’s efforts to support the exchange rate, certainly made its contribution. But against the background of world financial events, it does not look like such a respectable factor for new borrowings burdening the economy. Although without them we are nowhere.
The AIS MIAD (Information System for Management and Issuance of Authorization Documents), once introduced with great pomp, still does not pay back the resources invested in it. Such conclusions were reached by the Court of Accounts of the Republic of Moldova, having assessed the implementation of recommendations by the agencies.
This week, the first portion of the census campaign results – the number of the population permanently residing in the country and by regions – was announced. The second portion – about demographic features – was saved for the end of August. We will learn information about residential buildings only by the end of the year. The question about the time of disclosure of ethnic composition, nationality and mother tongue was not even raised by those present at the official meeting at the National Bureau of Statistics (NBS)….
Against the background of the general well-being of the financial sector, the decline in profitability of the insurance business in the first quarter of the year looks, at least, strange. The National Bank does not name the real reasons for the deterioration, but fixes the decrease in total profit, losses of insurance companies and other obvious symptoms of temporary malaise.
As a rule, the fiscal and customs policy for the next year is approved/adopted around the middle of the current year or, in some cases, at the end of July, when the Parliament officially concludes its spring-summer session. This is done both to enable the Government in general and the Ministry of Finance in particular to develop the state budget for the next year on the basis of the new fiscal and customs policy, and to enable the business environment to prepare in advance for the new rules that are about to come into force.
When the Prima Casa program was launched in Moldova in 2018, it was positioned as a large-scale social initiative – a chance for young families to find their own housing with state support. Today, several years later, Prima Casă has turned into a source of uncertainty, debt traps and social tensions. Instead of a sustainable solution to the housing problem, we got an overheated market, disguised incentives for the banking sector and the state’s withdrawal from its own obligations.
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.
