The banking system has considerably improved its stability due to the 2016 reforms, maintain specialists of the Expert-Grup center at the Thursday’s news conference at Infotag while presenting the research “Results of Monitoring Recent Reforms in Moldovan Banking Sector”.

 

Center Executive Director Adrian Lupusor said that the progress was due to the laws, aimed at combating money laundering, transforming guarantees on NBM credits into state debt, as well as signing of a Memorandum with the International Monetary Fund.

 

“Signing the agreement with the IMF, Moldova undertook the transparency of actions in banking system, gradually removing gaps in the legislation, concerning the banking sector. Now, the Government guarantees that the 2014 crisis in banking sphere will no more recur”, he said.

 

Expert Dumitru Pintea said that despite the registered progress, the banking sphere remains vulnerable. In particular, he pointed at the current scheme of deposit guarantees will prevent it from dealing with expenditures in case the bank goes bankrupt.

 

“The maximum sum of guarantees on deposits is 6 thousand lei. This is too few, given the current level of salaries in Moldova. It is desirable that this sum to be gradually increased to 24 average salaries by 2020. It is necessary that in the nearest time the NBM to propose quality reforms on introducing changes in the legislation on bank deposit guarantees”, the expert said.

 

Expert-Grup analyst Eugen Ghiletchi said that Moldova needs to strictly follow the IMF recommendations to preserve the banking sector stability. In this regard, the adoption of the law on capital liberalization and tax stimulation may undermine the registered progress.

 

“The adoption of this law allows people, involved in bank fraud, to easily register the stolen money. This will tie hands of the Kroll company, which is engaged in investigating the theft and will reduce almost to zero the opportunity to return the billion in the country”, he said.

 

At the same time, he positively assessed the adopted law on transforming guarantees on NBM credits worth 13.3 billion lei into state debt. According to him, the Government chose the most logical way to rehabilitate the banking system, proposing 5% interest rate.

 

“The authorities took such a decision on the basis of IMF recommendations. Had this law not been adopted, expenditures of the Government and citizens would be more considerable”, the expert said.

 

One more positive action of the Government is the program “First House”, launched by the Finance Ministry. Expert Sergiu Gaibu said that this is not just a successful social project, it is important from the point of view of Moldovan banking system strengthening.

 

“The project implies a mortgage credit on buying housing for 10-30 years with 9% interest rate. This will raise the number of bank clients, which will contribute to their sustainability in case of a new crisis. This will lead to development of building sector. But the authorities should not stop at this program, but continue launching similar projects which will contribute to economy development”, he said.