PROGRESSIVE DOUBLE PENSION INDEXATION WAS EXCLUDED FROM BILL – PREMIER

The progressive double indexation of pensions in 2021-2022 was excluded from the draft law before the voting in the second reading at the request of the International Monetary Fund. This was stated to the press by Prime Minister Ion Chicu on Wednesday after the weekly meeting with President Igor Dodon and Speaker of the Parliament Zinaida Greceanii.

He said that this year the double indexation will be conducted as it was planned, while the conditions of indexation in the following years will depend on the state budget.

“We are a responsible Government and we are cooperating with the IMF we have submitted the initial draft law to. They asked us to remove these provisions [on raising the number of beneficiaries from double indexation] from the law before getting macroeconomic rates for 2021-2022”, the premier explained.

According to him, on January 22 the IMF mission will arrive to Chisinau and this issue will be discussed with them. He added that Moldova’s external partners insist that the authorities to support namely the citizens with the smallest pensions – around 600 thousand people.

President Igor Dodon said that the decision on the indexation and social payments in 2021 will be discussed later while considering the draft law for the next year – depending on revenues and other economic rates.

Chicu expressed support to the president’s idea on implementing a mechanism of monitoring the prices in Moldova, which was used 10 years ago by Zinaida Greceanii’s Cabinet of Ministers, when the current premier and president were members of that Government.

“Everyone should understand that we have a market economy in the country and we seek liberalization. However, state agencies and the Competition Council should fight against cartels”, he said.

Infotag’s dossier: The initiative on conducting pension indexation twice a year has initially implied that in 2020 the indexation will concern citizens with pensions below the amount of subsistence wage, in 2021 – below two subsistence wages, in 2022 – three. However, before the voting for the draft law in a second reading, MP Vladimir Odnostalko of the PSRM proposed an amendment on excluding the progression, which was adopted.