May 8 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Wednesday it has lowered its forecast for Moldova's economic growth in 2019 to 3.5% from 4.0% projected in November.
For 2020, the EBRD sees Moldova's economy growing at 3.8%, the bank said in its May 2019 Regional Economic Prospects report.
The bank stressed that long-standing structural and demographic challenges faced by Moldova are compounded by current uncertainties regarding the inconclusive outcome of parliamentary elections in February and delays in disbursements of funds from international partners.
On the bright side, the EBRD praised the completion of the clean-up of the banking sector, as non-transparent shareholders have now been replaced by fit and proper foreign strategic investors in all three systemic banks,
"In March 2019, a 63.9% stake of Moldindconbank, the second largest bank in Moldova, was acquired by a strategic foreign investor," the EBRD noted.
Bulgarian diversified group Doverie United Holding [BUL:5DOV] said in March that it has completed the acquisition of a 63.8865% shareholding interest in Moldindconbank through its wholly-owned unit Doverie-Invest.
Moldova's economy expanded by an estimated 4.0% last year, following 4.7% growth in 2017.
The country's 2019 budget is built on projections of 4.0% economic growth and deficit equivalent to 2.7% of GDP.
In April, the International Monetary Fund lowered its forecast for Moldova's 2019 economic growth to 3.5% from 3.8% predicted in October.
Also last month, the World Bank said Moldova's gross domestic product growth in the next few years is expected to remain well below the 4.6% average achieved in the last decade, undercut by weaker foreign and domestic demand. The country's GDP is projected to grow by a real 3.6% this year, 3.5% in 2020, and 3.8% in 2021, the World Bank said.