The current status-quo of the Republic of Moldova can be labeled as a country amid a general crisis, evidenced through a combination of at least five self-sustaining crises: economic, institutional, budget, banking and social crises. In this context, the Government, together with Parliament, National Bank of Moldova (NBM), National Commission of Financial Markets (NCFM) and other key institutions must commit to implementing an Anti-Crisis Plan that will include immediate measures to alleviate the effects, and in particular the causes of the ongoing national crisis.
The plan shall be designed in a way that would stop the continuous degradation of the economic, financial and social state of affairs and therefore turn the Government’s action plan into a credible, feasible and beneficial one for Moldova’s development, on the background of sustainable macroeconomic premises.
Here is a brief insight into the proposed Anti-Crisis Plan:
Measures for tackling institutional crisis
- Who is who? Setting a functional analysis of public institutions by an independent entity;
- More competent public servants;
- Strengthening internal governance of public institutions;
- Better communication between state institutions.
Measures for tackling banking crisis
- Preparing a banking system rescue plan;
- Removing legal possibilities for commercial banks to interact with companies from dubious jurisdictions, including off-shore zones;
- Immediate commencement of the second stagethe baking fraud investigation;
- Investigating the involvement (lack of reaction, illegal decisions etc.) of decision makers from government and regulatory institutions (NBM, NCFM);
- Strengthening independence of Central Bank;
- Publishing information about the usage of emergency loans;
- Taking decisive action in recovering NBM’s credit funds;
- Investigating the shareholding positions in the banking sector;
- Implementing a coherent monetary policy, which shall be correlated with growth and development objectives.
Measures for tackling budgetary crisis
- Boosting dialogue with development partners;
- Obtaining, through dialogue, the unfreezing of financial funds committed by international donors for 2015;
- Amending the Law on State Budget for 2015;
- Maintaining the lock on budget expenditures until then Budget Rectification in 2015;
- Organizing a general audit on the public sector by an independent entity;
- Applying indirect methods of assessing income and property for fiscal purposes;
- De-offshorization of trade;
- Eliminating practices of fiscal populism;
Measures for tackling social crisis
- An immediate initiation of the pension reform;
- Reevaluating social protection offered to certain beneficiaries, focusing on families and social groups truly in need;
- Offering employment opportunities in paid public activities, where possible;
- Creating a mechanism to stimulate employment;
- Developing a proactive policy, negotiating and signing international social security agreement;
- Ensuring active and credible communication between decision makers and the public.