IMF executive director encourages continuation of reforms in Moldova's banking sector

Chisinau, 6 July /MOLDPRES/ - The executive director of the International Monetary Fund (IMF), Anthony De Lannoy, on a visit to Chisinau, has encouraged the continuation of the reforms in the banking sector of Moldova at a meeting with Governor of the National Bank of Moldova (BNM) Sergiu Cioclea.   

The two officials discussed, in particular, the need to ensure the transparency of banks’ stockholders and improve the risks management, according to a press release by BNM. Anthony De Lannoy welcomed the authorities’ effort to attract quality investors into the banking sector from Moldova. For his part, the BNM governor hailed the recent decision by the IMF Board of Directors on completing the third evaluation of the programme and the unlocking a new installment of 24 million Special Drawing Rights (about 33.8 million dollars). Sergiu Cioclea said that BNM would continue the reforms meant to strengthen the banking sector and improve the regulatory framework and the banking supervision

The officials’ discussions continued today, within a meeting at BNM with independent experts, dedicated to programme with IMF and economic situation in Moldova. Experts tackled issues on monitoring IMF’s conditions, improving the work of state institutions, efficiency of public investments, fighting corruption and combating the money laundering, the need to speed up the reforms in other sectors. The sides paid special attention to the European Parliament’s resolution from 5 July 2018.  Anthony De Lannoy expressed confidence that, due to the progress made in the carrying out of IMF’s programme, this decision would not hit the financial stability of Moldova.   

IMF today published an additional memorandum on economic and financial policies. The Central Bank commits to allow a bank of systemic importance get out of the temporary management regime “in an orderly manner”, to identify “the end owners beneficiaries of all banks from Moldova.” BNM will undertake legal measures of coercion against the stockholders acting jointly and will eliminate the stockholders who do not meet the honourability and professionalism criteria in the banks which have no systemic importance, till late March 2019.    

Also, the National Bank will analyze the explanations to the sides affiliated. The minimum requirements for the risk management programmes dealing with the affiliated sides, due to be discussed with the banks, are under elaboration. One of the commitments refers to the ensuring of the work of the Central Securities Depositary and checking the integrity of the data in the registers of stockholders. The depositary is to become fully functional till late next October.  

Under the memorandum, BNM revises the legal and operational framework concerning the providing of urgent assistance in form of liquidities, the one of ensuring the deposits and the framework dealing with the liquidation of banks. These reforms are scheduled to be ended till late 2018.  

A special chapter of the document regards the monetary and currency policies, aimed at targeting the inflation and preventing the fluctuation of the exchange rate.   

The programme with Moldova was approved by IMF on 7 November 2016 for a three-year period. The financing takes place through two crediting facilities: Extended Fund Facility (EFF) and Extended Credit Facility (ECF), for an overall sum of 129.4 million special drawing rights (183.1 million dollars).  

(Reporter V. Bercu, editor L. Alcaza)