Government should bank less on foreign loans, economist


Economist Viorel Gîrbu believes the Moldovan authorities should bank less on foreign loans and should do a fiscal reform so as to generate own resources, IPN reports.

After the ruling party announced that the new executive is to negotiate a new agreement with the IMF, Viorel Gîrbu said the document should not be negotiated based on excessive concessions.

“It is regrettable that the political elite lay such a great emphasis on loans and grants offered to the Republic of Moldova in concessional conditions. The higher is the number of loans and grants, the greater is the extent to which our partners appreciate as very week. Receiving loans is similar to being placed in intensive care. The assistance from the IMF is a signal of our failures. We continue to pay interest on the loans raised earlier. And where did we get to?” Gîrbu stated in the program “The Fourth Estate” on N4 channel.

According to the expert, to lay the basis of a well-founded economy, the authorities should start with a broad fiscal reform.

“The Government should have an own view and should discuss from equal to equal with the foreign partners and should bank on internal resources. We should see if the fiscal system was well-thought out, if the fiscal burden is correctly placed on the taxpayers. The Government does not correctly tax the largest financial flows,” stated Viorel Gîrbu.

The economist believes it is not right to wait for immediate results from the new executive as this will need several months to familiarize itself with the new tasks. The secretaries of state leave together with the ministers, but these should ensure the continuity of processes in the Government.

“A credit of trust of at least six months should be offered to the new administration so that the Government realizes what it needs to do. A lot depends on the governmental team. Our ministries do not work very well as they do not have personnel with the highest qualifications. But the first months of work by the new ministers will already show what we should expect in the immediate period,” stated Viorel Gîrbu.