Moldova's economic and banking crisis could grow

Significance

Moldova's weak economy is currently embroiled in the midst of a banking crisis which has seen 1 billion dollars go missing from three of the nation's biggest banks. In total, this amounts to a loss of 20% of Moldova's GDP. Moldova's central bank employed US investigative consultancy firm Kroll to find the money and its report has now been made available to the public. The authorities have detained one of Moldova's richest men, Ilan Shor, as part of the investigation.

Impacts

• The government's political will to stay the course of cooperation with the EU will provide incentives for the latter to support Moldova.
• Failure to find and return the missing 1 billion dollars could lead to more protests and political instability.
• A high-profile anti-corruption drive is likely to be announced and a new international investigation will be launched in mid-May.