Finances

​MOODY’S PUSHES MOLDOVA’S RATING FROM NEGATIVE B3 UP TO STABLE

16 january, 2017

Influential international rating agency Moody’s has upgraded Moldova’s investment rating from “Negative B3” up to “Stable”.

The Agency substantiated its decision as follows: the State financing of the national economy has become less risky after Moldova had signed a new cooperation agreement with the International Monetary Fund, which has led to extra multilateral and bilateral funding and to adoption of new legal frames of banking regulation aimed at strengthening the banking sector regulation system.

Moody’s also highlighted a calmer political situation in the country after a whole chain of changes in the Government in 2014-2015, when a huge bank fraud led to a sharp growth of the country’s state debt.

At the same time, Moody’s experts indicated that Moldova’s rating is remaining fairly restricted due to a high level of poverty, a low economic level, structural obstacles on the way to an economic growth and a very weak institutional power in the republic.

Prime Minister Pavel Filip called the Moody’s decision “an important and hopeful piece of news for Moldova”.

“This is the result of the efforts which the Government, Parliament and all citizens of Moldova made to overcome the hard economic and political crisis. This is the result of our fulfilling in 2016 of the Roadmap with the European Union, the result of the starting of serious reforms and of signing of cooperation agreements with the IMF and the World Bank. This is an encouraging signal for us in 2017”, Pavel Filip wrote in social networks and expressed a wish to receive a positive rating for Moldova, “which should promote improvement of the living standards of every citizen”.

The Executive Coordinator of the ruling coalition in Moldova, Chairman of the Democratic Party Vlad Plahotniuc also called the Moody’s decision “very positive for Moldova and extremely unpleasant for populists and manipulators from the so-called opposition, who criticize reforms and were blocking in every possible way the signature of the new agreement with the IMF”.

“We shall continue reforms, although some of them are unpopular. And we shall bring our work to the practical result everybody is anticipating – to raising the population’s living standards”, underlined Plahotniuc.

Infotag’s dossier: On July 31, 2015 Moody’s preserved Moldova’s credit rating at the level of B3, but lowered the republic’s further development perspective from stable to negative. That decision was taken due to a low level of liquidity of governmental securities caused primarily by higher risks in ensuring multilateral financial support i.e. the absence of a cooperation agreement with the International Monetary Fund and the freezing of external financial assistance.

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