Moldova could face a severe financial crisis later this year, if it fails to cover a $1bn budget shortfall, creating the prospect of unpaid salaries and heightening the political tensions in the country following contested election results 10 days ago.

The country, already Europe’s poorest, with a gross domestic product per capita of just $1,800, is dependent on some $2bn a year in remittances from residents abroad, which amount to a third of the country’s GDP.