Insurance companies to no longer provide loans in Moldova

Chisinau, 6 December /MOLDPRES/ - The insurance and reinsurance companies will no longer be able to provide loans with interest from the financial means available. The MPs today adopted a draft law to this effect in the first reading.  

Under the document, the initiative’s authors reason the need to make amendments by the existence of risks to which insurers and reinsurers are subjected when providing non-guaranteed loans with high values. In particular, they invoke the unavailability of equivalents in cash meant for fulfilling the obligations to the insured people, as well as the additional risks of non-reimbursement or late reimbursement of the funds borrowed.  

Thus, they find out that it is not reasonable for the insurers to provide loans, in the absence of estimating the risk of the unavailability of the financial means borrowed.

If adopted in the final reading, the new law is to enter into force one month after its publication in Moldova’s Official Journal (Monitorul Oficial).

Photo: Parliament