IMF says legal reforms enacted in the aftermath of 2014 banking crisis strengthen governance structure of National Bank of Moldova

Chisinau, 25 April /MOLDPRES/ - Legal reforms enacted in the aftermath of the 2014 banking crisis and supported by the IMF have strengthened the NBM’s (National Bank of Moldova) governance structure and autonomy, Resident Represent of the International Monetary Fund in Chisinau Volodymyr Tulin said in a press statement released today.   

The Fund’s representative noted that, at present, the existing governance framework rests on adequate mechanisms for dismissal procedures of the NBM management. “Securitization of the 2014-2015 emergency lending to the troubled banks has been imperative to ensure a viable balance sheet and hence NBM’s capacity to fulfill the mandate of maintaining price and financial stability,” Volodymyr Tulin noted. He also said “it remains vital to protect the hard-earned progress and avoid any initiatives that would weaken existing safeguards. The IMF will be closely monitoring developments in this area.”

“The International Monetary Fund has always placed an utmost importance on the issue of central bank institutional and policy independence. A robust central bank governance framework and strong balance sheet underpin price and financial sector stability, which are fundamental for sustainable economic development,” reads the statement by the IMF resident representative.