Moldova on its IMF and reform track after six months of responsive government

Today's Moldova bears no resemblance to the one six months ago.For those who remember the January's financial and political debacle or the people taking to the streets of Chisinau, this is very good, although surprising news. After half-year in office, I am proud to be the Prime Minister of a country fully committed to structural reforms, European integration, attracting foreign investments, and ensuring a predictable and transparent decision-making process. Today's Moldova has found its voice and, slowly, but surely, is regaining lost credibility and self-confidence.

It is only a matter of days until a staff-level agreement with the IMF will be reached. Last week, in a joint press conference with the head of the mission to Moldova, I was happy to see that there is consensus on key issues such as the governance and transparency of the banking sector, the reforms needed in the energy sector, and medium-term fiscal policy objectives. Only minor hurdles remain to be cleared, with the agreement expected to be approved by the IMF Board in the fall. In the coming months, by working together with our international partners, we will continue to implement measures designed to improve our growth outlook and the business climate and to attract investments.

For Moldova, an IMF agreement is similar to an investment grade rating and represents a validation of the pro-business agenda put in place by the Government since January. More importantly, now Moldova has all that it takes to be considered a trusted partner, with a return to international financial markets being the natural consequence. I want to extend an invitation to all investors looking for good opportunities to evaluate the potential of Moldova: In Chisinau there is not only a strong pro-European will, but also a more sophisticate understanding of how the state can create the conditions for the business to thrive. We are launching a wave of privatisations this autumn.

This is not the only good news coming from our country. The 2016 Priority Reform Action Roadmap, a set of key measures agreed between the Government and the EU institutions in March, will be fully implemented by the end of July, confirming once again how serious our commitment to European membership is. As I have highlighted in a speech in the Parliament with the occasion of the Association Agreement entering into force at the beginning of July, Moldova has no B plan and the time has come to match words with actions. This is what our Government intends to do and the first step consist of speeding up the implementation of the Association Agreement.

We believe that European integration goes hand in hand with increasing the standard of living of Moldovans. This explains why, in the last couple of months, we have cut the prices for drugs, gas, and electricity, while increasing minimum wage and pensions. As we consider education and healthcare national priorities, the Government allocates more money for doctors, nurses, and professors. Easing up the social and economic burden for those the most impacted by the 2015 turmoil and by the bank fraud scandal was the sine qua non for making sure that the hard won stability will not be threatened.

I am a statesman who understands the role of the private sector in fostering economic growth. I know that, without a strong business environment, without a partnership between the state and private companies, it is nearly impossible to have more jobs, development, and more resources to invest in education, healthcare, or infrastructure. This is why one of my main tasks as Prime Minister of Moldova is to help and make life easier for those who have invested or want to start a business in our country. From the very beginning we agreed that reform should start with Government itself: the parliamentary majority will approve this month, formally, the slimming down of Government from 16 to 10 ministries. Less red tape, more efficiency, this is our credo.

Concrete measures speak louder than anything else, so I want to present just a few of the policy changes implemented since January: a moratorium on controls of both big businesses and SMEs has entered into force, limiting temptations of abuse; the number of control institutions has been reduced to a fifth and a similar reduction applied to permits and authorisations; the reform of the fiscal administration and the custom office, which has already increased the state revenues by 18%, will continue; the new legislation regarding a privileged fiscal regime for the IT business parks attracts the attention of a international companies; the reform of the Fiscal Code, of the labour legislation and the education system is in the making. At a structural level, the Economic Council of the Prime Minister promotes substantial dialogue with the business environment, being a key mechanism meant to increase consultation with stakeholders.

While the Government is the most pro-business Cabinet in recent history, we are aware that what will bring about the full trust of investors and Moldovan citizens will be winning the anti-corruption war. This is one of the key priorities, reflected in recent legislative changes. New legislation will ensure the real independence of the prosecutors. The reformed anti-corruption directorate will follow the Romanian example and will target only high-level corruption. One of the first tasks of the prosecutors is to bring before court the authors of the bank fraud and recover the stolen money, a process which has already started to produce results.

As the record of the Government in the first six months stands as proof, all the conditions for a stable and reform-oriented Moldova in the coming years are met. More that ever, our country is ready for and open to foreign investments. Given recent developments, Moldova should be on your investment radar!

(Source: wwww.europeanbusinessreview.eu)