Moldova: Borrow Money Directly to Gov. Online
Moldovan citizens will soon be able to lend money directly to the government online, bypassing intermediaries.
A web platform facilitating this initiative is currently under development and is expected to launch by the end of July. The authorities and economic experts believe this will reduce intermediation costs by eliminating commercial banks from the process of acquiring government securities (VMS).
However, public opinion on the initiative is divided. While some citizens express interest in lending if the terms are favourable, others with limited income acknowledge their inability to participate.
Public Opinions on the Initiative
- One citizen stated they would be more likely to borrow from the government than lend due to financial constraints.
- Another expressed distrust in the government's financial practices, citing high fees on loans and concerns about the security of their investments.
- A pensioner highlighted their limited financial resources and past experiences with currency devaluation, expressing scepticism towards the initiative.
- Concerns regarding technological accessibility were raised by some, suggesting that younger demographics might be more comfortable using the online platform. However, they indicated a willingness to participate if offered competitive interest rates.
- Overall, a sense of distrust towards the government due to past disappointments was prevalent among some citizens, coupled with the daily struggle to make ends meet.
The Ministry of Finance hopes this initiative will stimulate domestic savings and investment. The minimum investment amount will be 100 lei, and all transactions will be conducted in Moldovan lei. The government plans to utilise the funds raised through this program to finance development projects, prioritising areas like infrastructure and education.
Economic experts believe that if implemented effectively, this program can offer significant benefits for both the government and citizens. Potential advantages include reduced borrowing costs, increased transparency in public finances, and the diversification of funding sources for the government. However, they emphasise the importance of proper risk management and citizen education to ensure the program's success.
Translation by Iurie Tataru
