Prime Minister Ion Chicu today chaired an online cabinet meeting. Seven subjects were on the agenda.

Ion Chicu referred to the intention to amend the 2020 budget law, in the context of the effects triggered by the COVID-19 pandemic on the economic processes. The drafts worked out by the government provide for allocations for the national health system and for the social expenses which increase dramatically.   

The government approved a string of measures, meant to back the entrepreneurial activity and the employees who lost their jobs because of the restrictions imposed by the Commission for Emergency Situations (CSE).

The PM thanked economic agents for understanding, in the context of the restrictions imposed by the management of the epidemiological situation. Chicu also touched upon the measures taken by the cabinet to support the business and preserve jobs.  

Deputy Prime Minister, Finance Minister Serghei Puscuta unveiled for approval a draft on the amendment of the 2020 budget law. The need of the amendments came about as a result of the assessment of the economic affects and the measures imposed in the process of administration of the epidemiological situation.

Initially, the national budget was formed, while taking into account a 3.8-per cent increase of the Gross Domestic Products (GDP) against 2019.

The effects of the COVID-19 pandemic on the global, regional and national economic processes prompted the need to re-evaluate the evolution of the economic indexes and to recalculate the national public budget, while taking as basis a 3-per cent drop of GDP, which implies a cut in the budget revenues by 6.338 billion lei.

In the new conditions, the budget deficit will amount to 15.975 billion lei or 7.52 per cent of GDP.

To compensate the budget deficit, the government will use resources identified in the negotiations with Moldova’s partners, such as the emergency loan provided by IMF – 4.42 billion lei, a loan provided by Russia – 4.16 billion lei, issuance of state transferable securities worth 4 billion lei, up by 2 billion lei than initially planned for 2020, a loan amounting to 454 million lei on behalf of the World Bank. Revenues worth 700 million lei are estimated from the privatization of public assets.  

The government discusses a macro-financial support of 624 million lei on behalf of the European Union. An installment worth 208 million lei, received from IMF within the programme completed in last March, is used to compensate the budget deficit.

The cabinet discusses an emergency loan with the European Union.  

The draft implies measures of backing the business environment, for which 300 million lei is earmarked. Resources are envisaged for attenuating the effects of the economic crisis, such as the additional allocation of 168 million lei for the unemployment fund and earmarking of 200 million lei for the social assistance fund. The National Employment Agency will additionally receive 10 million lei for organizing programmes meant to enhance the possibilities of employment for the jobless people.   

The cabinet negotiated a credit amounting to 58.4 million dollars on behalf of the World Bank; 33 million dollars will be used in the health sector for combating the COVID-19 epidemic and 24 million dollars – for increase of the unemployment fund and other social expenses.  

The Council of Europe Development Bank will provide Moldova with a loan worth 70 million euros, of which 30 million euros will be directed for supporting the small-and medium-sized enterprises and 40 million euros (20 million euros in 2020 and 2021 each) in the healthcare system.  

Prime Minister Ion Chicu said: ’’We were not able to foresee such a situation in the darkest scenario either. We are in emergency situation. We must come up with measures to save the society and the economy; we are in the situation when the revenues are decreasing and the expenses increase. There is likelihood of a higher drop of the GDP and we will need to strictly monitor the spending.’’      

The cabinet ruled to allocate six million lei for the providing of one-off allowances worth 16,000lei to 375 medical specialists infected with COVID-19.

Health, Labour and Social Protection Minister Viorica Dumbraveanu presented for approval a draft on starting talks and signing of an agreement between the governments of Moldova and Turkey. The accord sees a donation of equipment on behalf of Turkey, among which 30,000 masks, 10,000 protection overalls, 5,000 protection spectacles, 10,000 pairs of gloves, 10,000 pairs of shoes and one ton of disinfectant for hands.