Moldovan PM presents important laws to parliament

Chisinau, 27 September /MOLDPRES/- Prime Minister Pavel Filip today presented the seven laws assumed by government to the parliament, which are related to the financial-banking sector and to converting emergency loans in state debt, being offered by the National Bank of Moldova (BNM) to the three banks that have been liquidated. All draft laws have been coordinated with the International Monetary Fund (IMF), due to consider a new programme for Moldova in October 2016.

At the beginning of a special meeting, Socialists’ faction blocked the rostrum of parliament. MPs were asked to take their seats in the hall, but after they did not accept, Speaker Andrian Candu requested a technical break. Subsequently, Candu announced that “Igor Dodon and Zinaida Greceanii are sanctioned, so they will not be able to take the floor and deliver speeches within three parliamentary sessions.”

After the Socialist MPs left the parliament’s conference hall, Filip started to present the laws, which the government took responsibility on. “We are going on this formula, as regards taking responsibility, as we do not have time, one month to meeting of IMF Executive Committee remained. If we choose the classic form, we will not manage to adopt the laws and to unlock IMF and EU financing,” Filip said.

The laws include seven drafts on recovery and resolution of banks: central securities depository, emission of state securities in the account of guarantees offered to BNM by government in 2014 and 2015 for credits to the three banks declared bankrupt, drafts on amending state budget law, state social insurance budget law and law on healthcare funds. “These amendments will restore confidence of foreign partners, will prevent crises in the banking system, will raise the level of responsibility of the banks’ administration, and will help unlock foreign funds,” he said.

Under the draft on converting emergency loans in state debt, it is scheduled to issue state bonds amounting up to 13 billion 583 million lei for a period of up to 25 years, with a 5-per cent- interest rate. The state bonds will be sent to BNM. “The amount that will actually remain in the public debt is not known. Besides this, all money recovered and those that might be recovered, including via Kroll investigation, will be taken off these resources. It is important for the government that the amount it recovers should be higher, so that to reduce public debt,” Filip said.

The speaker noted “700 million lei has been already recovered from the liquidation of banks. At the same time, 300 criminal cases have been initiated, according to which assets amounting to 3.5 million lei have been seized. We should not forget Kroll report, which will identify persons, transactions and assets being defrauded, including by locating, freezing and then recovering the amounts of money,” Candu said.

Another draft law assumed by the government is focused on state budget revision. Thus, the incomes and expenses in the budget will be cut by 2 billion 650 million lei. The deficit is estimated at 4 billion 182 million lei or 3.15 per cent of the Gross Domestic Product. Internal state debt will reach 21.7 million lei in late 2016, and the external one – 32.4 billion lei, which represents 40.8 per cent of GDP. The state social insurance budget will be supplemented with 84 million lei, under the draft assumed by the government.

After presenting the laws, Candu pointed out that the lawmakers could not ask questions, could not take the floor or initiate debates under the drafts. “After presenting the laws, during 72 hours a censure motion against government can be initiated. If it is not presented or subsequently is rejected by parliament, the laws assumed by government enter into force automatically and are published again in the Official Journal of Moldova,” he said.

The leader of the Party of Socialists, Igor Dodon, told journalists that the Socialists’ faction would submit a censure motion. “I came up with an appeal to all MPs to sign this document in order to stop entrance into force of these laws. We hope today to accumulate necessary signatures and to register motion on behalf of three factions: Party of Socialists, Party of Communists (PCRM) and Liberal Democratic Party (PLDM),” Dodon said.

PCRM faction’s head Ina Supac and PLDM faction’s head Tudor Deliu confirmed that the Communists and Liberal Democrats would sign for the censure motion against Filip government.

After the last visit by IMF representatives to Moldova, Filip repeatedly declared he was sure that in October the country would have an agreement with the financial institution. Subsequently, IMF submitted to Moldova 16 conditions in the fiscal, budget, financial, banking and energy sectors, in order to resume financing.  

(Reporter A. Plitoc, editor A. Răileanu)