Current financial problems of the Republic of Moldova

Currently, the Republic of Moldova is in an economic crisis, which is a result of compounding the effects of the pandemic crisis triggered in 2020; the energy crisis manifested starting in 2021, and the regional impact of the military conflict between Russia and Ukraine. This crisis created a series of financial problems. First, it is about the high rates of inflation caused by different groups of factors of different natures. As a chain reaction, high inflation and the measures taken to combat it caused the interest rates on bank deposits and loans to rise, as well as on loan instruments in the securities market. Likewise, important movements have occurred in the foreign exchange market. The economic crisis affected the country's budget system, causing disproportions between budget revenues and expenditures. As a result, the Republic of Moldova faces a significant budget deficit, which requires financial coverage. This is ensured more and more through external loans, while internal ones are becoming more and more expensive in the form of exaggerated interest rates on state securities. In these conditions, a national anti-crisis strategy is necessary for the country. The lack of this can lead to the propagation of the consequences of the crisis in the coming years.