National bank of Moldova to provide liquidity assistance in emergencies only to solvable, viable banks

18:00 | 09.08.2019 Category: Economic

Chisinau, 09 August /MOLDPRES/ – The National Bank of Moldova (BNM) will be able to provide liquidity support in emergencies, only to the solvable and viable banks, which are facing temporary liquidity issues, according to a draft law, approved by the Government, on 09 August.

"The project will make transparent and strengthen the banking system in Moldova, in order to avoid cases in which BNM rescues insolvent banks, as in the case of Banca Sociala (Savings' Bank)," said Minister Finance, Natalia Gavrilita.

According to minister, it will prevent the situation in which a bank from Moldova will try to grant from "bad will" non – performing loans "to be used in financial fraud, relying on the subsequent assistance of BNM".

According to project, for the liquidity assistance guaranteed with assets eligible for the support or with state guarantees, terms of granting are approved in advance by the Ministry of Finance (MF). The conditions of granting liquidity assistance in emergencies are established by BNM by Regulation.

The draft law is part of the reforms agreed with the International Monetary Fund (IMF).

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