Banks' liquidation period extended from 3 to 5 years in Moldova

Chisinau, 22 July /MOLDPRES/ - The parliament today adopted the extension of the period of liquidation of banks from three to five years, with its extension by another two years instead of one.  

The amendments were made to the law on financial institutions and law on state registration of legal entities and private entrepreneurs.

According to the National Bank of Moldova (BNM), “the liquidation of banks are presently put in impossibility to complete the process of liquidating the banks in the term set by the legislation, as the sale of assets is difficult and lasting, and the process of  recovery of debts at the expense of debtors in process of insolvency is quite difficult.”  

On 1 February 2016, 11 banks were under liquidation, the licences of which were withdrawn many years ago. Data unveiled by liquidators shows that these banks have big debts worth 2.27 billion lei to private people, banks, legal entities, including state institutions, of which 585.9 million lei to private people. The extension of the liquidation term will lead to enhancing chances for depositors to recover the debts, BNM said.  

(Reporter A. Plitoc, editor A. Raileanu)