Moldova's economic crisis.
Moldova is still reeling from the banking crisis of November 2014, which deprived the economy of 1 billion dollars. The bailout of the three banks implicated in the scandal destabilised the financial system. Against the background of a flagging macroeconomic performance and a deepening financial crisis, which has seen a halt in support from major international institutions, the country has been rocked by protests. In October a non-confidence vote brought down the pro-EU government of Prime Minister Valeriu Strelet.
Emergency measures needed to maintain monetary and fiscal discipline will meet a negative reaction from the Moldovan public.
The government's popularity will further decline, possibly aiding pro-Russian parties.
Compensation for depositors will come from the budget, which is likely to stretch expenditure beyond the fiscal system's ability.
