Layoffs in the public sector, less money for subsidy projects and increasing tariffs - are the main stipulations of the Financing Memorandum of Moldova, approved by the Executive Board of the International Monetary Fund. This is the opinion of the expert in economics, Roman Chirca.

Asked by the reporter of Deschide.MD to comment on the stipulations of the new agreement with the IMF, the expert said that the main objective which the IMF aimed was setting certain commitments that would lead to establishing a financial discipline.

"The budget deficit amounting 3.2% of the GDP, was capped. Also, certain public expenses are capped. For example, it will be reduced the number of employees in the public sector by liquidating the vacant positions and even some layoffs are not excluded that will generate savings of 200 million lei. On the other hand will be capped the subsidies in agriculture and other specific branches, other aspects relevant to services and goods that will be reduced substantially, again, many of them," he said.

Roman Chirca also says that by the end of this year is expected a review of the public budget.

"A very important moment and that will effect the living costs are the tariffs. The memorandum says expressly that the prices must be adjusted to justify the cost of producing electricity, which means that we have a revision of tariffs and an essential increase. Moreover, the Memorandum stipulates a program of relaunching the economy, many aspects of tax optimization in order to increase the revenues by 1.2% after increasing fiscal responsibility by standardizing the VAT, by eliminating the phenomena of payment under the table and many other activities that were discussed in society as well," said the expert.

Chirca also says that two main components of the Agreement are the responsibilities and the objectives for establishing the financial- fiscal discipline, order in the banking sector, but also the basic element which provides a whole range of activities and program elements for the economic reform, boosting the entrepreneurship.

"Overall, it is a program that aims to create maximum fiscal discipline. This will lead to bigger fiscal discipline and responsibility of economic operators and citizens. It will be difficult to implement some salary increases, pensions. This means a living standard that cannot be improved through budget support, the strict control of public spending, fighting corruption, and an entire program of economic recovery," he said.

Also, for the first time, the fiscal and financial discipline have to be on the second place in the Agreement, and on the first place is the order in the banking system, inclusively by approving a package of laws.

"An absolutely impossible thing, unless it is approved a package of laws and the main scourge is not repelled - the corruption. This thing is proposed through the judicial reform, of the prosecuting authorities, the responsible agencies for collecting taxes. The memorandum does not stipulate the mechanism that will contain the reform, it is rather a list of generalities and principles which will be taken into account. Anyway, the Memorandum implementation progress will be reviewed by the Fund missions, where, over time, many of these commitments will be evaluated. Also, multiple technical assistance programs are provided that will offer some consultations, including on the fight against corruption area," said Roman Chirca.

The expert claims that other provisions contained in the Agreement have already been circulated at a general level. Here we refer to the banking sector as being a priority one, it also listed the key commitments that Moldova assumes through special administration of the three banks: MAIB, Moldindconbank and solving of the issue related to the Victoriabank Administrative Board, developing the legislative framework.