{"id":447997,"date":"2020-02-11T06:07:32","date_gmt":"2020-02-11T06:07:32","guid":{"rendered":"http:\/\/www.moldova.org\/en\/?p=447997"},"modified":"2020-02-11T19:33:08","modified_gmt":"2020-02-11T19:33:08","slug":"who-is-going-to-return-the-stolen-billion-president-dodon-announced-a-new-legislative-initiative","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/who-is-going-to-return-the-stolen-billion-president-dodon-announced-a-new-legislative-initiative\/","title":{"rendered":"Who is going to pay back the stolen billion? President Dodon proposed a new legislative measure"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>A new legislative initiative was announced by the president of state, Igor Dodon. According to him, the burden of the robbed billion from the banking system placed on the shoulders of citizens will be reduced.<\/p>\n<p>In October 2016, the Parliament of the Republic of Moldova voted a bill, called unofficially <em>&#8220;the\u00a0Law of a Billion&#8221;<\/em>, providing for the <span style=\"color: #993300\">conversion into state debt of emergency loans<\/span>\u00a0of <strong>13.5 billion lei, <\/strong>disbursed by the National Bank of Moldova (NBM) to the bankrupted banks involved in the &#8220;<a href=\"https:\/\/www.bbc.com\/news\/magazine-33166383\">Great Moldovan Bank Robbery<\/a>&#8221; that happened in 2014. The state debt, including the interest, <span style=\"color: #993300\">was to be returned by the Moldovan citizens out of their paid taxes<\/span>, over the next 25 years. The first payment of 668 million lei was made in October 2017. In 2018, another 827 million lei were paid. By 2041, a total of\u00a0<strong>24.5 billion lei <\/strong>will be paid. More details <a href=\"https:\/\/watch.cpr.md\/investigarea-crimelor-financiare-si-recuperarea-activelor\/\">here<\/a>.<\/p>\n<p><em>&#8220;We promised previously to reduce or exclude the burden put on the shoulders of citizens following the stolen billion. At this stage we found the mechanisms needed to reduce this burden by 5-6 billion lei, so 25% &#8211; 30% of it. The project was also discussed with our external partners from the IMF, and is to be approved by the Government in the next few days, as well as submitted to Parliament for approval,\u201d<\/em> <a href=\"https:\/\/www.moldova.org\/guvernul-socialist-in-an-electoral-ne-scapa-de-povara-miliardului-si-indexeaza-pensiile\/\">declared<\/a> Dodon.<\/p>\n<p>The whole mechanism idea is to<span style=\"color: #993300\"><span style=\"color: #000000\"> transfer half of<\/span> the profit of the National Bank of Moldova to the state budget<\/span>.<\/p>\n<p>The NBM management declared that the president&#8217;s legislative initiative is balanced and that it has been discussed with the experts from the IMF as well. <span style=\"color: #000080\"><em>&#8220;Such a distribution is possible by amending the Law on the National Bank of Moldova in order to introduce a model of phased and partial distribution of profits to the state budget until the level of 10% of the capital of the NBM is reached. This would be in line with international practices and could ensure the balance between the distribution of profits to the state budget and the gradual capitalisation of the National Bank,\u201d<\/em><\/span>\u00a0<a href=\"http:\/\/tv8.md\/2020\/02\/10\/conducerea-bnm-anunta-ca-accepta-initiativa-de-a-da-bani-din-venitul-institutiei-pentru-a-acoperi-gaura-din-furtul-miliardului\/\">declared<\/a> the NBM representatives.<\/p>\n<p>The mechanism proposed by President Dodon is not new for the Republic of Moldova. It was previously implemented and afterwards dropped out in 2003.<em>\u00a0\u201cWe already had such a mechanism. After 2003, this practice was stopped, as it was considered that the NBM profit should remain with the NBM in order to strengthen the capacity of the institution, so that it can intervene on the currency or monetary market in case of a crisis,&#8221;<\/em> <a href=\"https:\/\/www.zdg.md\/stiri\/stiri-economice\/opinii-ce-riscuri-implica-propunerea-lui-dodon-de-a-reduce-datoria-miliardului-pusa-pe-umerii-cetatenilor\">claimed<\/a> the economic expert\u00a0Veaceslav Ioni\u021b\u0103.<\/p>\n<p>According to the economic expert, the solution proposed by the head of state could have negative consequences in the event of an economic crisis, when the\u00a0NBM would have to intervene and the Government would have to cover the NBM&#8217;s financial needs. The expert said the president&#8217;s solution could raise several questions from the IMF: <em>&#8220;I think we will have to provide explanations to the IMF because it was the IMF that said not to take the NBM profit in the state budget, and we are going back to what it was.&#8221;\u00a0<\/em><\/p>\n<p>The Dodon&#8217;s initiative was also criticised by the political opposition of the government. <em>\u201cThe transfer of some income from one pocket of the state to another does not mean easing the burden placed on citizens. The solution for the Law (of a Billion) is to recover the money from those who stole it. [&#8230;] The tactic of Igor Dodon is actually removing the money from the National Bank&#8217;s reserves to finance the huge expenses of the current government in the election year. The Moldovan Government has never planned to spend so much money, that has uncertain funding sources,\u201d<\/em> <a href=\"https:\/\/www.facebook.com\/NataliaGavrilitaMF\/\">said<\/a> former Minister of Finance Natalia Gavrili\u021b\u0103.<\/p>\n<p>Photo: unknown source<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>A new legislative initiative was announced by the president of state, Igor Dodon. According to him, the burden of the robbed billion from the banking system placed on the shoulders of citizens will be reduced. In October 2016, the Parliament of the Republic of Moldova voted a bill, called unofficially &#8220;the\u00a0Law of a Billion&#8221;, providing [&hellip;]<\/p>\n","protected":false},"author":31,"featured_media":447998,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[585,30,390,35,586,109,27,587,149],"class_list":["post-447997","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics","tag-billion","tag-dodon","tag-imf","tag-important","tag-initiative","tag-law","tag-moldova","tag-nbm","tag-stolen-billion"],"content_social_share":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>A new legislative initiative was announced by the president of state, Igor Dodon. According to him, the burden of the robbed billion from the banking system placed on the shoulders of citizens will be reduced.<\/p>\n<p>In October 2016, the Parliament of the Republic of Moldova voted a bill, called unofficially <em>&#8220;the\u00a0Law of a Billion&#8221;<\/em>, providing for the <span style=\"color: #993300\">conversion into state debt of emergency loans<\/span>\u00a0of <strong>13.5 billion lei, <\/strong>disbursed by the National Bank of Moldova (NBM) to the bankrupted banks involved in the &#8220;<a href=\"https:\/\/www.bbc.com\/news\/magazine-33166383\">Great Moldovan Bank Robbery<\/a>&#8221; that happened in 2014. The state debt, including the interest, <span style=\"color: #993300\">was to be returned by the Moldovan citizens out of their paid taxes<\/span>, over the next 25 years. The first payment of 668 million lei was made in October 2017. In 2018, another 827 million lei were paid. By 2041, a total of\u00a0<strong>24.5 billion lei <\/strong>will be paid. More details <a href=\"https:\/\/watch.cpr.md\/investigarea-crimelor-financiare-si-recuperarea-activelor\/\">here<\/a>.<\/p>\n<p><em>&#8220;We promised previously to reduce or exclude the burden put on the shoulders of citizens following the stolen billion. At this stage we found the mechanisms needed to reduce this burden by 5-6 billion lei, so 25% &#8211; 30% of it. The project was also discussed with our external partners from the IMF, and is to be approved by the Government in the next few days, as well as submitted to Parliament for approval,\u201d<\/em> <a href=\"https:\/\/www.moldova.org\/guvernul-socialist-in-an-electoral-ne-scapa-de-povara-miliardului-si-indexeaza-pensiile\/\">declared<\/a> Dodon.<\/p>\n<p>The whole mechanism idea is to<span style=\"color: #993300\"><span style=\"color: #000000\"> transfer half of<\/span> the profit of the National Bank of Moldova to the state budget<\/span>.<\/p>\n<p>The NBM management declared that the president&#8217;s legislative initiative is balanced and that it has been discussed with the experts from the IMF as well. <span style=\"color: #000080\"><em>&#8220;Such a distribution is possible by amending the Law on the National Bank of Moldova in order to introduce a model of phased and partial distribution of profits to the state budget until the level of 10% of the capital of the NBM is reached. This would be in line with international practices and could ensure the balance between the distribution of profits to the state budget and the gradual capitalisation of the National Bank,\u201d<\/em><\/span>\u00a0<a href=\"http:\/\/tv8.md\/2020\/02\/10\/conducerea-bnm-anunta-ca-accepta-initiativa-de-a-da-bani-din-venitul-institutiei-pentru-a-acoperi-gaura-din-furtul-miliardului\/\">declared<\/a> the NBM representatives.<\/p>\n<p>The mechanism proposed by President Dodon is not new for the Republic of Moldova. It was previously implemented and afterwards dropped out in 2003.<em>\u00a0\u201cWe already had such a mechanism. After 2003, this practice was stopped, as it was considered that the NBM profit should remain with the NBM in order to strengthen the capacity of the institution, so that it can intervene on the currency or monetary market in case of a crisis,&#8221;<\/em> <a href=\"https:\/\/www.zdg.md\/stiri\/stiri-economice\/opinii-ce-riscuri-implica-propunerea-lui-dodon-de-a-reduce-datoria-miliardului-pusa-pe-umerii-cetatenilor\">claimed<\/a> the economic expert\u00a0Veaceslav Ioni\u021b\u0103.<\/p>\n<p>According to the economic expert, the solution proposed by the head of state could have negative consequences in the event of an economic crisis, when the\u00a0NBM would have to intervene and the Government would have to cover the NBM&#8217;s financial needs. The expert said the president&#8217;s solution could raise several questions from the IMF: <em>&#8220;I think we will have to provide explanations to the IMF because it was the IMF that said not to take the NBM profit in the state budget, and we are going back to what it was.&#8221;\u00a0<\/em><\/p>\n<p>The Dodon&#8217;s initiative was also criticised by the political opposition of the government. <em>\u201cThe transfer of some income from one pocket of the state to another does not mean easing the burden placed on citizens. The solution for the Law (of a Billion) is to recover the money from those who stole it. [&#8230;] The tactic of Igor Dodon is actually removing the money from the National Bank&#8217;s reserves to finance the huge expenses of the current government in the election year. The Moldovan Government has never planned to spend so much money, that has uncertain funding sources,\u201d<\/em> <a href=\"https:\/\/www.facebook.com\/NataliaGavrilitaMF\/\">said<\/a> former Minister of Finance Natalia Gavrili\u021b\u0103.<\/p>\n<p>Photo: unknown source<\/p>\n<div class='heateorSssClear'><\/div><div  class='heateor_sss_sharing_container heateor_sss_horizontal_sharing' data-heateor-sss-href='https:\/\/www.moldova.org\/en\/who-is-going-to-return-the-stolen-billion-president-dodon-announced-a-new-legislative-initiative\/' data-heateor-sss-no-counts=\"1\"><div class='heateor_sss_sharing_title' style=\"font-weight:bold\" ><\/div><div class=\"heateor_sss_sharing_ul\"><a aria-label=\"Facebook\" class=\"heateor_sss_facebook\" href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Fwww.moldova.org%2Fen%2Fwho-is-going-to-return-the-stolen-billion-president-dodon-announced-a-new-legislative-initiative%2F\" title=\"Facebook\" rel=\"nofollow noopener\" 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billion? President Dodon proposed a new legislative measure - Moldova.org<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.moldova.org\/en\/who-is-going-to-return-the-stolen-billion-president-dodon-announced-a-new-legislative-initiative\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Maria Dulgher\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.moldova.org\\\/en\\\/who-is-going-to-return-the-stolen-billion-president-dodon-announced-a-new-legislative-initiative\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.moldova.org\\\/en\\\/who-is-going-to-return-the-stolen-billion-president-dodon-announced-a-new-legislative-initiative\\\/\"},\"author\":{\"name\":\"Maria Dulgher\",\"@id\":\"https:\\\/\\\/www.moldova.org\\\/en\\\/#\\\/schema\\\/person\\\/4cd49a1f49c7d48a105c8a4cb7e3a2bf\"},\"headline\":\"Who is going to pay back the stolen billion? 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