The European Union has decided to suspend the financing of Moldova’s budget.
According to EU Ambassador to Moldova Pirkka Tapiola, this is impossible without an agreement with the IMF and an approved government.
Tapiola said that the EU wanted to see a coalition in Moldova. He urge the country to apply the IMF for a new agreement. According to the ambassador, the EU’s key concerns are banking crisis and macro-financial stability in the country.
Acting Prime Minister of Moldova Natalia Gherman said that the resignation of the premier and the cancellation of an IMF delegation’s visit to Moldova had affected the country’s macro-economic performance. “We will have to tighten our belts and will finance only the most essential sectors,” Gherman said.
Economic analysts have repeatedly warned that Moldova’s economy is in recession. Pessimists expect the country to face a default.
As EADaily reported earlier, on June 17 the IMF cancelled the visit of its delegation to Moldova because of the political crisis in that country. Since no new agreement with the IMF is available, Moldova is unable to receive funds from abroad.
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