IMF concerned by lack of direct investment in Moldovan economy

Published: 28 June 2003 y., Saturday
IMF representatives have said Moldovans send home about 500m dollars annually, which is larger than the state budget. According to the fund's experts, Moldova will face serious financial problems if this money stops coming, given the fact that there is no foreign investment. Marta Castello-Branco, the IMF mission chief said that the impact of remittances on the Moldovan economy is great. They contribute to stability of the leu's exchange rate and the control of inflation and they allow the economy to grow. But the problem is that this money only puts off some problems. According to Marta Castello-Branco, the amount of direct investment in the Moldovan economy is very small and the investment climate should be improved. She said that if remittances stopped coming, Moldova would face serious problems. The authorities have previously estimated that Moldovans working abroad send home 230m [dollars], but these calculations were based only on official transfers. National Bank of Moldova's officials had previously said that this money did not significantly influence the domestic currency market.
Šaltinis: BBC Monitoring
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