Moldovan government approves new provisions to increase transparency of banks' shareholders

Chisinau, 08 June /MOLDPRES/ – The Cabinet of Ministers approved at its today meeting amendments and completions to current legal framework for increasing transparency of shareholders into banking sector, the government’s communication and protocol department has reported.

The draft law comes with amendments and additions to laws on financial institutions, joint stock companies, capital markets, recovery and resolution of banks, and activity of banks.

In particular, there will be explicitly outlined procedures for cancellation, issuance and sale of participation quotas in case of non – compliance with shareholding requirements in capital of banks.

The amendments aim at better corporate governance and attracting quality investors in banking system. These provisions goal to ensure stability of banking sector, preserving main functions and directions of banks, protecting interests of depositors and other creditors.

The draft law was drawn up under programme of International Monetary Fund (IMF) and is of major importance for banking system in Moldova. The document was consulted with related agencies, ministries and international experts, including IMF. The project's provisions will help improve business management of banking sector by shareholders meeting requirements of banking legislation.

"It is our assumption we shall be able to get approved amendments to IMF, as we have proposed. All the more that all that has begun in the banking system, so that we know that we will no longer have problems in it, neither with transparency of shareholders, nor with evasion or fraud," mentioned PM Pavel Filip.

The Government has also endorsed a legislative initiative to amend and supplement certain legislative acts as to clarify provisions of legal norm applicable to ongoing processes at time of law adoption on how to determine term and selling price of bank's shares.