MOLDOVAN ECONOMY ENTERS CRISIS HAVING A GOOD MACRO-ECONOMIC BASIS - EBRD EXPERTS

The Republic of Moldova's economy is entering a crisis having a good macro-economic basis, believe experts from the European Bank for Reconstruction and Development.

In their article for the Banking & Finance magazine of Moldova, they wrote that the Moldovan economy had been developing last few years at a fairly good pace, and a considerable contribution into it was made by capital investment and export.

The National Bank hard-currency reserve, which has exceeded US$ 3 billion and is enough for covering nearly 6 months of critical imports, is at a comfortable level. The state debt is estimated at approximately 28% GDP size (in 2019), which leaves enough possibilities for the Budget at taking response measures, wrote the article authors.

They drew attention to the fact that years-long efforts to cleanse the financial system have led to its considerable improvement thanks to the toughening of the legal and regulatory basis and the management system. All this was largely promoted by strengthening the role played by regulatory bodies and by foreign strategic investors in the banking sector.

The EBRD experts wrote that the successful completion of the latest IMF Program with the Moldovan Government and the National Bank has demonstrated that the Moldovan authorities are committed to supporting a macro-financial stability in the country.