Moldovan official journal roundup for today

10:54 | 02.09.2019 Category: Economic

Chisinau, 2 September /MOLDPRES/- The law stipulating that the BNM will provide liquidity assistance in emergencies only to viable banks entered into force today with publication in the Official Journal of Moldova.

"In order to maintain the stability of the financial system, the National Bank may grant, in its full discretion and under the conditions set by it, to the solvable and viable banks, which are facing temporary liquidity problems, liquidity assistance in emergencies", the law reads.

The document also sees that the deadline for providing liquidity assistance in emergencies is up to three months, with the possibility of extending it exceptionally for a period not exceeding one year from the grant date, as determined by the Bank's Executive Board. At the same time, the assistance of liquidity in emergency situations is granted at an interest rate higher than the rate applied by the National Bank to its lending operations, including to the permanent lending facility.

The new law was adopted by parliament on August 15, at an extraordinary session.

Minister of Finance Natalia Gavrilița earlier said "the project will strengthen the banking system of the Republic of Moldova to avoid cases in which the BNM rescues insolvent banks, as in the case of the Savings Bank".

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