MoF BORROWS 5 BILLION LEI FROM DOMESTIC MARKET BY PLACING GOVERNMENTAL SECURITIES, PREMIER CHICU SAYS

The Moldovan Ministry of Finance has borrowed from the domestic market slightly over 5 billion lei by placing governmental securities, Prime Minister Ion Chicu announced on the local television on Monday evening.

The Premier stressed the attractiveness of the borrowed resources, whose interest rate constitutes 4.5% p.a., on the average.

"This financial indicator is evidence to a stable and predictable macro-economic situation in Moldova that creates trust in its banking system and national leu currency", said Ion Chicu.

In his words, the most attractive of the said governmental securities are the ones with a maturity of one year.

Such one-year papers, issued by the Ministry of Finance, constitute about 70% of the placed securities, though there are also papers with maturities of two, three and five years, said the Prime Minister.

Touching on the realization of the 2020 State Budget, Ion Chicu said its deficit will be approximately 10 billion lei and not 17 billion, as were the last summer's apprehensions.

"I presume the deficit will be at the level of 5% GDP due to growing Budget revenues and a more economical spending of Budget means", said Chicu.

Among the factors characterizing positively the realization of the 2020 Budget the Premier mentioned the resources accumulated in the budgets of local administrations that have reached a record-breaking level of 1.8 billion lei.

The Prime Minister presented also the data of external funding, which the Government received from Moldova's development partners: "In the current year, Moldova has received over US$320 million, which objective information is in disharmony with the sayings by some politicians concerning the republic's alleged international isolation".