{"id":160466,"date":"2010-02-05T14:24:45","date_gmt":"2010-02-05T14:24:45","guid":{"rendered":"http:\/\/new.moldova.org\/2010\/02\/05\/pm-filat-usa-is-a-honest-and-reliable-friend-of-moldova-205891-eng\/"},"modified":"2010-02-05T14:24:45","modified_gmt":"2010-02-05T14:24:45","slug":"pm-filat-usa-is-a-honest-and-reliable-friend-of-moldova-205891-eng","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/pm-filat-usa-is-a-honest-and-reliable-friend-of-moldova-205891-eng\/","title":{"rendered":"PM Filat: USA is a honest and reliable friend of Moldova"},"content":{"rendered":"Reading Time: <\/span> 6<\/span> minutes<\/span><\/span>

Moldovan Prime Minister Vlad Filat’s exclusive interview with the news agency MOLDPRES<\/em><\/p>\n

MOLDPRES: After your appointment as prime minister, you have visited many Western capitals, with Western politicians assuring Moldova of support in all the sectors: political economic, social, etc. But one could get the impression that you failed to command your emotions only in a single case, in Washington. By this triple "Thank you, America" should we understand that the visit yielded better results than expected?<\/strong><\/em><\/p>\n

Vlad Filat: During meetings with US officials, I felt unprecedented openness towards Moldova, sincere wish to help us and to deepen cooperation in many sectors. I should admit that I was pleasantly surprised by this. I understood that Moldova has honest friends in the USA and on the international stage. The discussions which I had with US Vice President Joseph Biden, Secretary of State Hillary Clinton and other US officials were full of content, I convinced myself that there is great interest in the processes taking place in Moldova, our visions for future and aspirations at external level.<\/p>\n

The signing of a joint statement by the United States and Moldova on the consolidation of bilateral cooperation was a proof of the USA’s support and openness towards Moldova as well. This statement along with other important documents signed during the visit to the USA (memorandum on cooperation between Moldova and North Carolina and the agreement within the Millennium Challenge Corporation Compact) stepped up the friendship between the two countries. In general, the visit was productive and, in my opinion, it gave a fresh impetus to the development of relations between Moldova and the USA.<\/p>\n

MOLDPRES: How important the 262 million dollars obtained within the Compact agreement is for Moldova?<\/strong><\/em><\/p>\n

Filat: To become eligible and sign this agreement, Moldova recorded much progress and assumed many reforms. By signing this agreement, the USA conveyed a clear message of support for Moldova.<\/p>\n

To put it more precisely, the assistance for the implementation of the Compact programme will be granted during five years. The Compact programme includes two major projects: Transition to High Value Agriculture worth 102 million dollars and Road Restoration, estimated at 133 million dollars. At the same time, 27 million dollars will be earmarked for the management, monitoring, assessment and audit of the Compact programme.<\/p>\n

The Transition to High Value Agriculture Project will contribute to increasing farming incomes of rural residents by fostering productivity and improving ways to sell high value added goods. The Road Restoration Project provides for repairs of 93 km of one of the main highways from north-eastern Moldova. This is an important highway for private transporters and passengers, as well as for domestic businesses and trade.<\/p>\n

MOLDPRES: While speaking about the visit to the USA, everybody focused mainly on the 262-million-dollar grant. But during a meeting with the chairman of the Foreign Affairs Committee of the House of Representatives, Congressman Howard Bremen, you said that the USA’s support is extremely important for Moldova’s development, especially in terms of functioning of democratic institutions and observance of the fundamental human rights. What is the meaning of this diplomatic wording of the discussions held in the USA?<\/strong><\/em><\/p>\n

Filat: I was constantly promoting this message during the visit to the USA, and this is not a diplomatic wording, as you put it. For years, the USA has been contributing, through its institutions and programmes, to the development of Moldova’s democratic institutions, enhancing the level of human rights’ observance. I will give as example the activity of the US Agency for International Development (USAID) in Moldova, National Democratic Institute (NDI) and International Republican Institute (IRI), etc. I would also like to mention the direct contribution of the US embassy in Chisinau, which financed a lot of projects aimed at Moldova’s democratic development. The USA has always been an honest friend to Moldova, helped us advance with democratic processes and backed us at external level. It is due including to this support that Moldova has evolved, advanced on the path to democratic reforms. Therefore, I asked for the USA’s further support in this respect.<\/p>\n

MOLDPRES: On 29 January 2010, the IMF Executive Board approved a three-year agreement with Moldova, which provides for a loan worth 574.4 million dollars. What will this money be used for?<\/strong><\/em><\/p>\n

Filat: The money will be allocated to support Moldova to restore fiscal sustainability, maintain financial stability, reduce poverty and ensure economic growth. Moldova got immediately access to 60 Special Drawing Rights (SDR) (about 93 million dollars), and the next installments will be disbursed following half-year revisions. The first installment is divided into two parts: to support the budget (62 million dollars), to supplement the currency reserves of the National Bank of Moldova (BNM) (31 million dollars).<\/p>\n

I would like to emphasize the importance of the IMF’s support for Moldova in the conditions in which we took over the government. At that time, Moldova was practically in default, the budget deficit accounted for 16 per cent of the Gross Domestic Product (GDP) (over eight billion lei). Due to the IMF’s support, we managed to stabilize the economic situation and lay a basis for subsequent economic growth.<\/p>\n

MOLDPRES: We have to ask this question because of the recent speculation on this subject. There are allegations that both the USA’s support and the IMF’s one were conditioned on Moldova’s participation in international peacekeeping operations, in particular, in Afghanistan. Was Moldova imposed such conditions or not? What is the government’s position on this issue?<\/strong><\/em><\/p>\n

Filat: Lately there have been many acts of speculation on Moldovan servicemen’s departure to Afghanistan, therefore I deem it necessary to come with some specifications. First of all, the government is not the one to send military to Afghanistan – this is made by a parliament decision. Moldova did this before too, when our servicemen participated in the peacekeeping mission in Iraq. I want to say that those who are now trying to speculate on the eventual departure of Moldovan servicemen to Afghanistan, have previously promoted the idea of participation in the peacekeeping mission in Iraq. Namely following an initiative by the former government, the parliament unanimously adopted decisions on our military leaving for Iraq. Secondly, we should differentiate between military actions and peacekeeping missions. Moldova participates only in peacekeeping operations and by no means in military actions. Due to our sappers, many human lives were saved [in Iraq], and this was appreciated at the international level. Thirdly, the departure of seasoned servicemen (i.e. young people serving in the armed forces) is out of the question, it is just about professional military wishing to participate in peacekeeping operations. Not in the least, I would like to say that Moldova aspires to be a member and benefit from its presence in a common international security area. But it is impossible to have only benefits without contributing with anything.<\/p>\n

MOLDPRES: The world crisis continues to torment not only economists and politicians, but also ordinary citizens. And while almost everybody is overrating their forecasts of future evolutions, the economics minister assured us that Moldova started getting out of the deadlock. Should we understand that we have overrun the world? But what about the chained price increases?<\/strong><\/em><\/p>\n

Filat: All the actions we have taken in this direction are based on the plan of economic stabilization and restoration. According to our realistic forecasts, we will not just overcome the recession in 2010, but will also end the year with slight economic growth.<\/p>\n

As concerns the price increase, this process should not necessarily be connected with the crisis. By the way, the latest increase in prices for some goods was groundless. I convinced myself of this during a recent visit to the central agro-food market in Moldova’s capital, as well as at a meeting with decision-makers whom I convened after that visit. Regretfully, we have traders trying to speculate in order to get profit, which is in breach of the legislation in force. The relevant bodies reported dozens of cases like this. I gave specific instructions to bodies in charge to involve and put an end to these abuses, keep an eye on the observance of the legislation so that the ordinary citizens do not suffer.<\/p>\n

There are also situations when the increase in prices is justified. Our position, in general, is that the market should dictate the prices, and the latter are to be set in line with the legislation in force. Our duty is to create conditions for people to have well-paid jobs in order to be able to cope with prices, rather than intervene in the process of their formation, if the legislation in force is being observed.<\/p>\n

MOLDPRES: And the last question, which is connected both with the loans which Moldova got over the last months and the social and economic evolutions in the country. Some specialists consider that once the state’s foreign debt increases, and they say that it doubled in just several months, should we expect both economic disasters and the deterioration of living standards? What the government’s short, medium- and long-term programmes for the normalization of the economic situation in Moldova are?<\/strong><\/em><\/p>\n

Filat: I will disappoint those who are "dreaming up" of "economic disasters" or present the situation in dark colours. When we took over the government, Moldova was really threatened by default. But we managed to overcome this danger, to lay the foundations of economic growth, which will favourably influence the living standards. We launched important social and economic reforms (introduction of a new social assistance system, initiation of structural reforms, such as reduction of the number of categories of goods subject to certification and mandatory licencing and other types of authorizations imposed on businesses), the results of which will be felt soon.<\/p>\n

All our actions are based on the government’s action programme, European Integration: Freedom, Democracy, Welfare, and the plan of economic stabilization and restoration. As a result of the latter’s implementation, we plan: to gradually diminish the weight of the budget deficit in the GDP to three per cent in 2010; to overcome the economic recession in 2010; to establish the deficit of the current account at about ten per cent of GDP, level that can be easily financed from direct foreign investments and official assistance; to gradually increase the annual pace of economic growth to five per cent in 2010, etc. Therefore, the pessimistic scenarios are ruled out. Moldova embarked on a normal path to development and this process is irreversible.<\/p>\n","protected":false},"excerpt":{"rendered":"

Reading Time: <\/span> 6<\/span> minutes<\/span><\/span>Moldovan Prime Minister Vlad Filats exclusive interview with the news agency MOLDPRES<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-160466","post","type-post","status-publish","format-standard","hentry","category-politics"],"content_social_share":"Reading Time: <\/span> 6<\/span> minutes<\/span><\/span>

Moldovan Prime Minister Vlad Filat’s exclusive interview with the news agency MOLDPRES<\/em><\/p>\n

MOLDPRES: After your appointment as prime minister, you have visited many Western capitals, with Western politicians assuring Moldova of support in all the sectors: political economic, social, etc. But one could get the impression that you failed to command your emotions only in a single case, in Washington. By this triple "Thank you, America" should we understand that the visit yielded better results than expected?<\/strong><\/em><\/p>\n

Vlad Filat: During meetings with US officials, I felt unprecedented openness towards Moldova, sincere wish to help us and to deepen cooperation in many sectors. I should admit that I was pleasantly surprised by this. I understood that Moldova has honest friends in the USA and on the international stage. The discussions which I had with US Vice President Joseph Biden, Secretary of State Hillary Clinton and other US officials were full of content, I convinced myself that there is great interest in the processes taking place in Moldova, our visions for future and aspirations at external level.<\/p>\n

The signing of a joint statement by the United States and Moldova on the consolidation of bilateral cooperation was a proof of the USA’s support and openness towards Moldova as well. This statement along with other important documents signed during the visit to the USA (memorandum on cooperation between Moldova and North Carolina and the agreement within the Millennium Challenge Corporation Compact) stepped up the friendship between the two countries. In general, the visit was productive and, in my opinion, it gave a fresh impetus to the development of relations between Moldova and the USA.<\/p>\n

MOLDPRES: How important the 262 million dollars obtained within the Compact agreement is for Moldova?<\/strong><\/em><\/p>\n

Filat: To become eligible and sign this agreement, Moldova recorded much progress and assumed many reforms. By signing this agreement, the USA conveyed a clear message of support for Moldova.<\/p>\n

To put it more precisely, the assistance for the implementation of the Compact programme will be granted during five years. The Compact programme includes two major projects: Transition to High Value Agriculture worth 102 million dollars and Road Restoration, estimated at 133 million dollars. At the same time, 27 million dollars will be earmarked for the management, monitoring, assessment and audit of the Compact programme.<\/p>\n

The Transition to High Value Agriculture Project will contribute to increasing farming incomes of rural residents by fostering productivity and improving ways to sell high value added goods. The Road Restoration Project provides for repairs of 93 km of one of the main highways from north-eastern Moldova. This is an important highway for private transporters and passengers, as well as for domestic businesses and trade.<\/p>\n

MOLDPRES: While speaking about the visit to the USA, everybody focused mainly on the 262-million-dollar grant. But during a meeting with the chairman of the Foreign Affairs Committee of the House of Representatives, Congressman Howard Bremen, you said that the USA’s support is extremely important for Moldova’s development, especially in terms of functioning of democratic institutions and observance of the fundamental human rights. What is the meaning of this diplomatic wording of the discussions held in the USA?<\/strong><\/em><\/p>\n

Filat: I was constantly promoting this message during the visit to the USA, and this is not a diplomatic wording, as you put it. For years, the USA has been contributing, through its institutions and programmes, to the development of Moldova’s democratic institutions, enhancing the level of human rights’ observance. I will give as example the activity of the US Agency for International Development (USAID) in Moldova, National Democratic Institute (NDI) and International Republican Institute (IRI), etc. I would also like to mention the direct contribution of the US embassy in Chisinau, which financed a lot of projects aimed at Moldova’s democratic development. The USA has always been an honest friend to Moldova, helped us advance with democratic processes and backed us at external level. It is due including to this support that Moldova has evolved, advanced on the path to democratic reforms. Therefore, I asked for the USA’s further support in this respect.<\/p>\n

MOLDPRES: On 29 January 2010, the IMF Executive Board approved a three-year agreement with Moldova, which provides for a loan worth 574.4 million dollars. What will this money be used for?<\/strong><\/em><\/p>\n

Filat: The money will be allocated to support Moldova to restore fiscal sustainability, maintain financial stability, reduce poverty and ensure economic growth. Moldova got immediately access to 60 Special Drawing Rights (SDR) (about 93 million dollars), and the next installments will be disbursed following half-year revisions. The first installment is divided into two parts: to support the budget (62 million dollars), to supplement the currency reserves of the National Bank of Moldova (BNM) (31 million dollars).<\/p>\n

I would like to emphasize the importance of the IMF’s support for Moldova in the conditions in which we took over the government. At that time, Moldova was practically in default, the budget deficit accounted for 16 per cent of the Gross Domestic Product (GDP) (over eight billion lei). Due to the IMF’s support, we managed to stabilize the economic situation and lay a basis for subsequent economic growth.<\/p>\n

MOLDPRES: We have to ask this question because of the recent speculation on this subject. There are allegations that both the USA’s support and the IMF’s one were conditioned on Moldova’s participation in international peacekeeping operations, in particular, in Afghanistan. Was Moldova imposed such conditions or not? What is the government’s position on this issue?<\/strong><\/em><\/p>\n

Filat: Lately there have been many acts of speculation on Moldovan servicemen’s departure to Afghanistan, therefore I deem it necessary to come with some specifications. First of all, the government is not the one to send military to Afghanistan – this is made by a parliament decision. Moldova did this before too, when our servicemen participated in the peacekeeping mission in Iraq. I want to say that those who are now trying to speculate on the eventual departure of Moldovan servicemen to Afghanistan, have previously promoted the idea of participation in the peacekeeping mission in Iraq. Namely following an initiative by the former government, the parliament unanimously adopted decisions on our military leaving for Iraq. Secondly, we should differentiate between military actions and peacekeeping missions. Moldova participates only in peacekeeping operations and by no means in military actions. Due to our sappers, many human lives were saved [in Iraq], and this was appreciated at the international level. Thirdly, the departure of seasoned servicemen (i.e. young people serving in the armed forces) is out of the question, it is just about professional military wishing to participate in peacekeeping operations. Not in the least, I would like to say that Moldova aspires to be a member and benefit from its presence in a common international security area. But it is impossible to have only benefits without contributing with anything.<\/p>\n

MOLDPRES: The world crisis continues to torment not only economists and politicians, but also ordinary citizens. And while almost everybody is overrating their forecasts of future evolutions, the economics minister assured us that Moldova started getting out of the deadlock. Should we understand that we have overrun the world? But what about the chained price increases?<\/strong><\/em><\/p>\n

Filat: All the actions we have taken in this direction are based on the plan of economic stabilization and restoration. According to our realistic forecasts, we will not just overcome the recession in 2010, but will also end the year with slight economic growth.<\/p>\n

As concerns the price increase, this process should not necessarily be connected with the crisis. By the way, the latest increase in prices for some goods was groundless. I convinced myself of this during a recent visit to the central agro-food market in Moldova’s capital, as well as at a meeting with decision-makers whom I convened after that visit. Regretfully, we have traders trying to speculate in order to get profit, which is in breach of the legislation in force. The relevant bodies reported dozens of cases like this. I gave specific instructions to bodies in charge to involve and put an end to these abuses, keep an eye on the observance of the legislation so that the ordinary citizens do not suffer.<\/p>\n

There are also situations when the increase in prices is justified. Our position, in general, is that the market should dictate the prices, and the latter are to be set in line with the legislation in force. Our duty is to create conditions for people to have well-paid jobs in order to be able to cope with prices, rather than intervene in the process of their formation, if the legislation in force is being observed.<\/p>\n

MOLDPRES: And the last question, which is connected both with the loans which Moldova got over the last months and the social and economic evolutions in the country. Some specialists consider that once the state’s foreign debt increases, and they say that it doubled in just several months, should we expect both economic disasters and the deterioration of living standards? What the government’s short, medium- and long-term programmes for the normalization of the economic situation in Moldova are?<\/strong><\/em><\/p>\n

Filat: I will disappoint those who are "dreaming up" of "economic disasters" or present the situation in dark colours. When we took over the government, Moldova was really threatened by default. But we managed to overcome this danger, to lay the foundations of economic growth, which will favourably influence the living standards. We launched important social and economic reforms (introduction of a new social assistance system, initiation of structural reforms, such as reduction of the number of categories of goods subject to certification and mandatory licencing and other types of authorizations imposed on businesses), the results of which will be felt soon.<\/p>\n

All our actions are based on the government’s action programme, European Integration: Freedom, Democracy, Welfare, and the plan of economic stabilization and restoration. As a result of the latter’s implementation, we plan: to gradually diminish the weight of the budget deficit in the GDP to three per cent in 2010; to overcome the economic recession in 2010; to establish the deficit of the current account at about ten per cent of GDP, level that can be easily financed from direct foreign investments and official assistance; to gradually increase the annual pace of economic growth to five per cent in 2010, etc. Therefore, the pessimistic scenarios are ruled out. Moldova embarked on a normal path to development and this process is irreversible.<\/p>\n

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