Tiraspol, 5 April. /Novosti Pridnestrovya/. The full version of the statement runs as follows:
"The government receives numerous requests from public organisations and letters from Pridnestrovian citizens who are concerned over the future of our country under volatile economic conditions.
It is noted in this regard that the government is conducting continuous and purposeful activities to overcome crisis economic phenomena.
It should be emphasised that despite a 30% shortfall of projected revenues in 2015 and unpopular decision to finance pensions and public sector salaries in proportion to revenues, the government found financial resources to pay off pension arrears in December. Thanks to the president's initiative and efforts and coordinated prompt actions taken by executive authorities at the beginning of 2016, in March the payment of pension allowances was resumed at the expanse of Russian humanitarian assistance.
Against the challenges the country and the economy are facing, in order to reduce fiscal and administrative burden on business entities, the government is pursuing the policy of unprecedented support to the real sector of economy, flexible tariffs, import-substitution as well as expanding Pridnestrovian exports to the Russian Federation. Besides, relevant ministries have been instructed to work out measures aimed at lifting a number of inefficient preventive customs duties.
It should be noted, at the same time, that the country's socio-economic development is confronted with many negative domestic and external factors preventing steady and progressive economic growth. Early 2014 saw the deterioration of macroeconomic conditions. The crisis phenomena aggravated in 2015 and affected the indicators of the first months of 2016. In January-February 2016 the industrial output decreased by 3.5% against the 2015 indicator, the volume of exports and imports fell by 8.7% and 36.8%, respectively.
Negative economic processes resulted in a drop of budget revenues. So, in January-February 2016 the republican budget received 185.3 million roubles ($16.7 million), which is 20.5% less than in 2016. In the meantime, the government is initiating efforts to pay salaries and pensions in full volume despite a decline in tax receipts.
Since December 2015 the country's gold and foreign currency reserves have tended to decrease due to worsening economic situation. So, as for 1 December 2015 the volume of gold and foreign currency reserves amounted to $32.3 million, which was followed by a downward trend: $19.8 million as of 1 January 2016; $18.8 million as of 1 February 2016; $12.3 million as of 1 March 2016.
A short-term projection of the volume of gold and foreign currency reserves is aggravated by a reduction in export power supply prices.
Currently, all electric power export, carried out by OOO Energocapital, go to the Moldovan market. Exchange earnings for the export of electric power make a considerable contribution to the stability of Pridnestrovie’s monetary policy. However, there are recurrent delays in payment of supplied power on the part of Moldova, which directly affects the stability of the exchange market and the volume of budget revenues. There are no other big sellers of exchange currency in the country at the moment. It is noted, at the same time, that based on 2015 results the share of electric power export is over 37% of Pridnestrovie's total export, and the share of Energocapital's contributions to the budget is about 40% of government spending on payment of salaries and pensions. Energokapital and MGRES secured additional receipts of more than 260 million roubles in 2015, which is equivalent to a two-month amount allocated for salary payment.
It should be emphasised that signing a power supply contract with the Republic of Moldova took place amid tough competition with Ukraine's business entities, which planned to occupy 65% of the Moldovan market, which was fully covered by Pridnestrovie in 2015. In order to prevent the loss of Moldova's electric power market, which would entail a reduction in budget revenues, this year's contract price has been reduced by 28%. However, these shortfalls are far less considerable than projected losses in case Pridnestrovie has lost Moldova's electric power market.
The government highlights the fact that panic is deliberately aroused around the existing imbalance of exchange currency. There are anti-state information attacks in the country's media scene aiming to misinform the population about the state of food supply, which is inadmissible amid volatile exchange market. The government is sure that the problems of citizens and enterprises should be given a systemic solution. Populist economic slogans must be replaced by the constructive search for positive solutions."
