Moldova (bbabo.net), - The Ministry of Finance will not be able to keep the yield on government securities (GS) low, former Prime Minister Ion Chicu said. the issuer of securities "play by their rules", reports infotag.md

When asked to what extent it is not dangerous to issue government securities by borrowing money on the domestic market, Chicu said that it is always better to borrow relatively cheap money on the domestic market.

"This is more profitable than even at 3.4% foreign currency loans associated with foreign exchange risks. In addition, often external borrowings are conditional, so it is difficult to build serious plans relying on this source of financing," he said.

The former premier says that Moldova has been given the status of "a source of raw materials and a supplier of unskilled labor."

"Until we, as a people, understand this, we will sell corn from the fields and export labor," he said.

According to him, an internal loan is also a loan that needs to be repaid, which means that these funds should be directed to development.

"If the total share of internal and external debt exceeds 60% of GDP, and the public infrastructure of Moldova remains in its current state, then we are "bankrupt", we are "default"," Chicu said.

And if the remaining 25 percentage points, which Moldova has left to the level of 60%, will be accumulated through borrowing aimed at investment, to increase the country's ability to repay these debts, then even with such a high level of debt, the situation will not look critical.

"The current ratio of the shares of internal and external debt in the total debt of the Moldovan state (43:57 as of December 1, 2021 -" I. ") is acceptable, but I would prefer this ratio to be at the level of 70:30", - Kiku said.

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