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Moldova

Yearbook 1998

Moldova. In the March parliamentary elections, the Moldovan Communist Party (PCM) became the largest party with 40 of Parliament's 104 seats. The former largest group, from the Agrarian Democratic Party, disappeared from the legislative assembly. Despite the success, PCM was put out of government formation. Prime Minister Ion Ciubuc formed a new right-wing government with the rest of Parliament as a basis: Ciubuc's own Moldova Democratic Convention (CDM), 26 seats, Movement for a Democratic and Prosperous Moldova (PMPD), 24 seats, and the Democratic Forces (PFD) Party, 11 mandate.

1998 Moldova

According to Countryaah, the new government cuts public spending. food tax on food and decided to increase the pace of privatization. As a result, the International Monetary Fund (IMF) in June resumed a three-year loan program to Moldova, which was suspended in 1997.

In July, deliveries of gas from Russia to Moldova were cut down to half as the country did not pay its bills. This led, among other things, to to the M. and the breakaway region of the Dniester Republic agreed to jointly rebuild the country's largest power plant. Russia is an important trading partner for M. and the Russian ruble crisis led to a dramatic fall in prices for the Moldovan currency, leu, in early September. After using almost half of the country's foreign exchange reserves to support the purchase of leu in early November, the central bank gave up attempts to save the currency. It then fell by a third of its value. Prime Minister Ciubuc presented an additional budget with new tough austerity measures. The Communist Party demanded a national rescue government and an end to free market reforms. The party requested a declaration of no confidence in the government in Parliament,

In November, Romania began supplying electricity to Moldova to try to resolve the country's deep crisis in the middle of an unusually severe winter. Ukraine had then canceled most of its electricity supplies to Moldova due to non-payment.

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