President orders government to clear pension arrears until the year’s end

12/07/15 16:08

President orders government to clear pension arrears until the year’s end

The president gave this order at a meeting with heads of financial ministries

Tiraspol, 7 December. /Novosti Pridnestrovya/.  Today Yevgeny Shevchuk met the acting prime minister, Maya Parnas, and the acting finance minister, Yelena Girzhul. Financing social benefits was the main point of the meeting.

The presidential press office reports that Pridnestrovian enterprises will retain the EU's free trade regime since 1 January 2016.

"Throughout 2015 there have been risks that our export will be barred from the EU market. In this connection certain reserves have been formed to cover a shortfall in income in January 2016. Our preliminary estimates have showed that the budget shortfall would amount to $30-50 million. So, as early as the beginning of the year we could face a lack of funds for paying pensions and salaries even at an amount of 70-80%," noted Maya Parnas. "Certain funds have been reserved to level the situation that might occur in January-February in case Pridnestrovie's exports are barred from the EU market. Today we have the opportunity to use these funds to partially clear social benefits arrears which have formed due to the underfunding of salaries and pensions.

Yelena Girzhul noted that as of 1 December the indebtedness to pensioners and public sector employees amounted to 754 million roubles. "This amount is almost equal to a shortfall in tax payments. In 11 months of 2015 all budgets fell short of 710 million roubles compared the same period in 2014," she said.

The president said that the Ministry of Foreign Affairs had held successful consultations with the EU and highlighted the fact that free trade issues have been settled with the EU.

Proceeding from the facts mentioned above, the president ordered the government to pay off debts, first of all, to pensioners.

"Our pensioners must receive money until the end of the year. Speaking about public sector employees' salaries: if there are insufficient funds to clear these arrears, forward them to the following year, include them in the 2016 budget. Assuming that the situation will not change on external markets, we can plan expenditures for 2016 more consistently.

"What is important today is that we can clear arrears and there are extra resources we can use to maintain the exchange rate of the Pridnestrovian rouble," said the president.

Maya Parnas also briefed the president on her working visit to Moscow. "As a result of the working visit to Moscow an agreement has been reached on receiving additional funds at an amount of 20 million Pridnestrovian roubles which will be credited to the republican budget revenue. A half of this amount will be received until the end of the year or at the beginning of 2016. This has enabled us to decide to pay off debts to the pensioners who have been struck off the pension register and the dismissed public sector employees. We have already started this work, and financing applications have already been submitted to the Finance Ministry," said the acting prime minister.

In addition, the president was told that the issue relating to Moldova's irregular payments for electric power had been solved.

"In summer, there were two or three weeks' arrears with power supply payment, which affected the budget revenues. There was a debt of nearly $20 million. As a result of negotiations, we have reached an agreement that allows for a more consistent payment procedure," underscored Maya Parnas.

 

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