Moldova, Republic Of 

Moldavië landenbeleid

Moldova, Republic Of country policy

Ook beschikbaar in Nederlands

Policy established 20 March 2000

  • Off cover
  • DSA/DSF: Public buyers at least 35% concessional
  • Public buyers: ORIO facility
  • Private buyers: SIF facility

Country class: 7

Restrictions

  • Special conditions, consult your accountmanager

 

Moldova, Republic Of country facts

Atradius DSB Economic Research
Country Report last updated 29 December 2009 

Country: MOLDOVA

Political Situation
Unstable, Unsettled Regional Problem

Head of state
President Vladimir Voronin.

Form of government
Coalition government of 4 non-commmunist parties (AEI, Alliance for European Integration) after July 2009 parliamentary elections (followed disputed April 2009 elections), headed by PM Vlad Filat. The power of the Party of Communists of the Republic of Moldova is eroding.

Internal Economic Situation
2009 9% Contraction, 2010 1% Growth

General situation
Moldova’s small and open economy is reliant on workers’ remittances (25% GDP), agricultural output, and exports. The global credit crisis hit both exportmarkets and transfers, resulting in real GDP contraction of 9% GDP in 2009. Extreme negative contribution priv. cons, extreme positive contribution NFB because of collapsed imports (-/- 35%). Zero inflation in 2009 (lower food- and energy prices, low domestic demand dynamics. Weak public finance (budget deficit 9% GDP). In 2010 all components expected to recover. Large unofficial circuit and corruption. Sound banking sector, not much impaired by the credit crunch. Less rapid credit growth. Lending funded through local deposit base. High captital-adequacy ratio (32%), increasing NPL. > 40% credit denominated in foreign currency. Relatively stable exchange rate MDL vs USD, but Monetary Authority intervened in 2009 at the expense of reserves.

External Economic Situation
Weak, High External Deficits

Main sources of foreign exchange
Agricultural products, textiles, workers’ remittances.

Main foreign markets
EU (52%), Russia (17%), Ukraine (13%).

Main expenses of foreign exchange
Mineral products (21%), capital goods (15%).
 

Balance of payments  
Dependency on workers’ remittances. 2010 external financing requirement USD 1,6 bn (financing: official MT loans, ST borrowing, IMF credits and FDI)

Contact Atradius

Paul Burger
Senior Economist
Tel: + 31 (0) 20 553 2332
Email: paul.burger@atradius.com