ATTRACTING MONEY BY BANKS IN INTERNATIONAL CAPITAL MARKETS IS STYMIED BY A SIGNIFICANT RESTRICTION OF 1%

The influx of portfolio investors into Moldovan banks, as well as banks' attraction of cheap money on international markets, is facing one problem - the regulatory restriction of a significant share in the capital of banks to 1%. This was stated in an interview to “INFOTAG: agency by the senior partner of the Horizon Capital fund (USA), Vasiliy Tofan.

“There is also a question of disclosure rules, but they are, one way or another, also related to the size of a significant stake,” the investor noted.

According to him, because of this, at the moment, it is impossible to carry out an IPO of any bank in Moldova.

“We have talked to more than 130 investors, they are interested in the commercial case, they are interested in it, and they want to enter the market of the Republic of Moldova. But when such draconian regulatory rules exist in the country, they are absolutely non-standard and incomprehensible to investors,” Tofan said.

He believes that increasing the size of a significant stake in the capital of Moldovan banks is simply inevitable.

“In the process of convergence of banking legislation with EU standards, the size of this stake should be set within 10%, as it is now in Romania, as well as in other EU countries. The question is only when we will do it. I would do it as soon as possible, not to miss the opportunities from the influx of foreign investments into Moldovan banks,” stated te expert.

According to Tofan, for such a small country as Moldova, this is “strategically important”.

“I must admit that changes in the leadership of the NBM [National Bank of Moldova] give a certain level of optimism that changes for the better will occur. We are a small country, we must fight and cling to every investor tooth and nail because none of them wakes up in the morning and thinks - I definitely need to invest in Moldova. Our regulators hold immense power, they must understand the responsibility that lies on them in attracting investments and improving life in the country,” the investor concluded.