We urge the parliamentary political parties to appoint a new government that enjoys majority support in the parliament as soon as possible in order to restore political and macroeconomic stability and in order to accelerate the reform process.
The latest developments in the country raise many concerns in the business community and among Moldova’s citizens, which can lead to a prolonged recession, social tensions and accelerated emigration. Entrepreneurs, investors, businesses from all sectors, regardless of their size, are facing an unprecedented degree of uncertainty, created by the absence of a stable government, by the questionable viability of numerous Moldovan banks.
The lack of transparency in shareholder structures and the failure of the National Bank to ensure efficient corporate governance within banks are the critical challenges to the banking sector that, today, threaten the stability of the entire Moldovan economy.
NBM delayed action on ensuring the integrity of the banking sector joined with the high degree of ‘offshoring’ of the shareholding structures of local commercial banks leads to deficiencies in corporate governance, unethical business practices and the distortion of competition. Despite the recent reforms, aimed at counter acting money laundering, local authorities fail to combat this phenomenon, and the banking system remains attractive for this type of activities.
We urge therefore the parliamentary political parties to appoint a new government that enjoys majority support in the parliament and to give this new government a mandate to reach a comprehensive agreement with the IMF. A new agreement with the IMF will not only improve Moldova’s public finances and help to achieve macroeconomic stability but will also accelerate the reform process and thereby restore confidence in a prosperous future for the Republic of Moldova."