Claudiu Năsui
In an interview with RFI, the minister explained that the problem of access to finance does not necessarily stem from the banks’ willingness to lend to the economy, but from the limited volume of resources they can mobilise. At the same time, the loans taken out by the state to cover the deficit generate additional costs, which will ultimately be borne by taxpayers.
“Banks, you know, really do want to lend. They have no problem lending. That’s their business. Banks make their money from two things: commissions and the interest rate spread. It used to be said that the higher the interest rate, the more the banks earn. Wrong! Banks earn from the interest rate spread: the rate they pay their depositors when you put money in a bank, versus the rate at which they lend that money out. So they would like to. It’s not a question of willingness. The problem is one of limited resources. And how do we ensure that the limited resources we have are allocated in the best possible way? That is the fundamental problem of the economy. What can the state do? It cannot conjure up resources out of thin air or pretend that we have resources out of thin air, because, in fact, we do not. That is why we have this huge deficit problem,” the minister stated.
Năsui drew particular attention to the costs of borrowing in an international context where interest rates are rising. He emphasised that small countries, which have a constant need for loans, are particularly vulnerable to the rising cost of finance.
“When the state spends money it doesn’t have, where does that money come from? From borrowing. It takes out loans. And when you borrow, you pay interest. And especially at the moment, if you look closely, interest rates are rising everywhere. They’re rising in France, they’re rising in America, they’re rising on international markets. And for smaller countries that take on debt, this spells disaster. It’s a massive problem. Especially as the Republic of Moldova is running a 6 per cent deficit. That’s huge. It’s colossal. And it’s a very large amount in the short term. In other words, if tomorrow they stop lending to you or lend to you at higher interest rates, you’re obliged to pay them back. And those interest payments come out of your money, out of the money of those listening to us or reading this, because ultimately they’re the ones who pay those interest rates in the form of future taxes.”
The solution lies in managing available resources more efficiently
In the minister’s view, the solution is not to devise mechanisms whereby the state distributes money it does not have, but to manage available resources more efficiently. Among the possible measures, Năsui mentioned reducing public spending and the administrative burden on the business sector.
“The key is to make the most of the resources you have. What can the state do here? Firstly, the state can be more prudent, cut its spending, and thereby reduce taxes. But I don’t think the main problem in the Republic of Moldova at the moment is taxation. There are some taxation issues, if you ask me, but I don’t want to venture into an area that doesn’t fall within the Ministry’s remit. However, there is also the issue of the administrative burden, and this is a matter that does, in a sense, fall within the Ministry’s remit and within our mandate. So, we end up focusing on what we can do. And what we can do is tackle this aspect of cutting red tape.”
Năsui announced that work is underway on a draft law to reduce red tape and stated that the aim is to create an environment that is as supportive as possible for small businesses, so that they can grow and develop.
This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.
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