Deposit guarantee ceiling to increase up to MDL 50,000 in Moldova

Chisinau, 18 July /MOLDPRES/ – The deposit guarantee ceiling will be increased from MDL 20,000 to MDL 50,000. The Fund will guarantee deposits in local currency and in foreign currency held by both resident and non-resident individuals, as it is currently the case, and by "private legal entities". A draft law containing these amendments was approved by the Government today.

According to the project, the National Bank of Moldova (BNM) classifies yearly the banks into three risk categories (A, B and C). Quarterly, the banks in the risk category pay a quarterly contribution to Fund of 0.08 per cent of the value of deposits guaranteed in respective banks. Category B banks pay out 0.1 per cent of value of guaranteed deposits, and banks in risk class C – 0.12 per cent.

The amendments stipulate that BNM may grant to Fund emergency liquidity assistance for a period not exceeding three months, provided that it is fully guaranteed by State securities held in portfolio of Fund. And the Ministry of Finance (MF) grants a loan to the Fund in order to make timely payments to depositors which deposits have become unavailable.

The law drafting has taken into account the recent recommendations made following the assessment of IMF financial system of Moldova.

(Reporter V. Bercu, editor L. Alcaza)