Economist: The Largest Budget Deficit in Its History Awaits Moldova

The largest budget deficit in its history awaits Moldova. This opinion is shared by the economic expert of the Institute for Development and Social Initiatives (IDIS) Viitorul Veaceslav Ionita. He noted on social networks, giving explanations about the Russian loan, that last year "he expressed concern that the budget of '2020" provided to cover 10 billion lei from grants and loans, infotag.md reported “Given the pandemic in the budget, another minus 7 billion lei of revenues and plus 2 billion lei. In general, the budget hole has increased by another 9 billion lei. Currently, budget revenues were estimated at 34.5 billion lei, and expenses - 53.5 billion lei. So, the biggest budget hole in the history of Moldova is expected, "Ionita said. According to him, "This 19 billion lei hole can be covered by grants, internal and external loans." “The government continues to be isolated at the international level and cannot rely on grants. So, it will rely only on loans. Which is sad. Expected external loans are estimated at 14 billion lei. And the Russian loan is only one solution, but subject to compliance national interests, legislation and the Constitution, " he said. Moreover, the expert emphasized that "in the current form, the loan agreement contains a big problem." "This is due to clause 7.2 of the Agreement providing for the possibility to turn the debt of private companies into a public debt."