DODON SUPPORTS IDEA TO BORROW FROM DOMESTIC MARKET ON ADVANTAGEOUS TERMS

Moldova President Igor Dodon says he supports the idea to organize borrowing of financial resources from the domestic market on terms that would be advantageous for the State.

In the course of his traditional weekly live Q&A communication with citizens, the President answered Infotag correspondent’s question concerning the current favorable conjuncture on the domestic market permitting the Ministry of Finance to borrow means necessary for the Budget.

Dodon answered: “We are considering this issue presently. Such a borrowing possibility really exists now. For this, however, we will need to make amendments in certain legal acts. You are right – the conjuncture is really favorable for our borrowing from Moldovan banks at an interest rate of, say, 1.5% p.a.”

Presently, interest rates on deposits in the national leu currency are standing at 3-4% on the average, and in convertible foreign currencies – av. 0.25% to 1.5%. Such conditions are favoring the State’s placing of 2-3-year-maturity bonds at an interest rate of 3.4% p.a. in a foreign currency, which will permit the Ministry of Finance to attract the Budget-missing US$300-500 million on advantageous terms.