The stability of Moldovan national currency the leu and that of the rate of inflation are mainly due to remittances sent home by Moldovans working abroad
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
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.
The most popular articles
New rules for the EU's single market will make it easier to live and do business anywhere in Europe.
more »
MEPs were disappointed that the Commission's EU budget review document had not sought the radical revision that the EU needs, they told Budgets Commissioner Janusz Lewandowski in a Policy Challenges Committee debate on Thursday.
more »
On 25 October, the Commission adopted the decision to financially support the 2011 electoral process in the Central African Republic.
more »
New EU framework for crisis management in the financial sector for managing problems before they spiral out of control.
more »
The financial crisis laid bare the limits of self-regulation, demonstrating the need for strong EU economic governance, surveillance and policy co-ordination, say two non-legislative resolutions voted by Parliament on Wednesday.
more »
The European Commission has approved an application from Germany for assistance from the European Globalisation adjustment Fund (EGF).
more »
Global and EU- level taxes on financial sector would help to fund international challenges such as development or climate change and fix the fallout from the global economic crisis.
more »
The European Investment Bank and African Development Bank today agreed to provide EUR 45m to design, build and operate onshore wind farms on four islands in the Cape Verde archipelago.
more »
MEPs want future EU budgets to accommodate new policy priorities as well as negotiations on new sources of financing.
more »
The European Parliament's Budgets Committee on Monday backed EU funding for 3,731 workers in Portugal, the Netherlands, Spain and Denmark who were made redundant due to the closure of their companies.
more »