Moldovan officials have asked the IMF for loan assistance, but the international body is reviewing the Eastern European nation’s broken financial system before approval, according to Radio Free Europe.
The government has contended with various corruption scandals, including $1 billion missing from the banking sector. Moldovan authorities will meet with International Monetary Fund (IMF) officials until the end of this week.
Moldova’s government contends with widespread protests, as citizens grow furious with a system managed by oligarchs, according to Voice of America. Financial supporters from the West have frozen financial assistance until Moldovan leaders address corruption. Moldova is an Eastern European nation that neighbors Romania and Ukraine and is one of Europe’s poorest economies.
Tens of thousands of Moldovans call for the head of President Nicolae Timofti as his cabinet contends with a mounting banking scandal, which has tarnished the reputation of Europe’s poorest nation, according to AFP. Moldova was once a former Soviet state but has gravitated closer to the European Union through an association agreement, much to the chagrin of Russia. Moldova sits between Ukraine and Romania.
Hard times in Moldova are prompting some Moldovans to warm to the idea of unification with neighboring Romania.
On July 5, thousands of Moldovans, carrying Romanian flags, marched in the Moldovan capital, Chișinău, voicing a preference that Moldova, a predominantly ethnic Romanian country that signed an integration agreement with the EU last year, give up on independence and join Romania, which is already a member of the EU and NATO.
The major exportable items of the country are petroleum, bauxite and aluminum, chemicals, steel, agricultural Moldova has experienced both balance of trade deficit as well as balance of payment deficit over various years.
Major Exportable items of the country are vegetables, manufactures, animal products and textiles. Exports partners of the country are Italy, Germany, Russia, and Romania.
STRUCTURE OF THE ECONOMY
Services have its relative importance in the country’s economy followed by the industry. As to the statistics, the percentage share of the services sector in the total GDP was 58.5 in the year 2005 followed by industries at 24.5.
Major agricultural products of the country are fruits, sugar beets, meat, milk, egg, tobacco and grain. Important industries in the country are oil, sugar, textiles, shoes and food processing.
Moldova is a lower income economy comes under Europe and Central Asian region as to the classification made by the World Bank on the basis of income and region for the year 2006.
It’s a very small country having a densely population. The country is highly dependent upon the imports of energy and manufacturing products.
DEMOGRAPHY AND SOCIAL INDICATORS
