Political

Moldova cash payments bill scrapped after economic concerns

The Moldovan Parliament has withdrawn a proposed bill that would have limited cash payments, following criticism that it would harm the country's economy and people's livelihoods.

The bill, introduced by the ruling Party of Action and Solidarity (PAS), aimed to cap cash payments at 60,000 euros and prohibit notaries from authenticating real estate contracts exceeding the value of 100 average monthly wages.

However, the bill faced opposition from the Communist Party and Socialist Party (CP-SP), with Bogdan Țîrdea, a CP-SP member, arguing that it would have "a negative impact on the country's economy and people's livelihoods."

Țîrdea highlighted the significance of unofficial salaries and remittances in the Moldovan economy, stating, "The largest source of income is from unofficial salaries. We are talking about 13 billion lei ($0.7 billion) in unofficial salaries in the Republic. Remittances from abroad, which in most cases are also unofficial, represent around 42 billion lei ($2 billion). Cash payments today represent more than 70%, so only 30% with a card. We believe that this is a bill that openly lobbies the banking sector."

Acknowledging the need for further refinement, Radu Marian, the chairman of the Commission on Economy, Budget, and Finance, announced the bill's withdrawal for additional public consultations.

"We are withdrawing it today on behalf of the Commission and we will submit it for further consultations," Marian explained. "The project indeed needs to be improved, but I want to remind you that the limit for payments is 60,000 euros. It is a fairly large sum and the project includes capping commissions on these transactions at 0.1%."

The withdrawn bill envisioned restrictions on cash payments for real estate purchases, limiting them to cases where the value does not exceed 100 average wages. Similarly, cash payments for transportation would be capped at 50 average monthly wages, even when payments are made in instalments.

Translation by Iurie Tataru

Bogdan Nigai

Bogdan Nigai

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