The process of recovering financial resources from the three banks that are being liquidated is in full swing. Since the licenses were withdrawn on October 16, 2015, until November 30, 2018, Banca de Economii, Banca Socială and Unibank collected 1.698,8 billion lei, 421.6 million lei of which was obtained in a criminal case. To repay the emergency loans since the withdrawal of licenses until November 30, 2018, the National Bank of Moldova and the Ministry of Finance allocated 1.728,0 million lei, the governor of the central bank Octavian Armașu stated in a common interview for the press, IPN reports.
Asked about the nonperforming loans at banks that represent 5.5% to 33% and about 13% on average in the system, the governor said the current rate of nonperforming loans is due to a number of reasons. In 2016-1017, the total bank loan portfolio decreased. Together with the repayment of high-quality loans of the bank portfolio and slow replacement of these with new loans, the relative share of nonperforming loans increased. Also, as a result of the comprehensive inspections carried out at licensed banks, some of the existing loans were already reclassified for prudential reasons.
“Currently, the portfolio of nonperforming loans has decreased mainly due to the broad reforms implemented by the National Bank of Moldova. In this connection, I would note that the share of nonperforming loans in the loan portfolio of banks on November 30, 2018 was 13.4%, down 5% compared with the start of 2018,” said the governor.
The National Bank repeatedly recommended the banks to take measures to reduce the number of nonperforming loans, to permanently monitor the quality of the loan portfolio and to strengthen the business management structure, especially as regards the management of lending risks. It also requested the banks to present information about the progress made in implementing measures to reduce the volume of nonperforming loans.
Among the measures taken by banks were the implementation of strategies and plans for diminishing the number of nonperforming loans, revision of internal regulations or working out of new internal regulations concerning lending, training of employees in lending, permanent monitoring and presentation of information about the evolution of nonperforming loans by the administration of banks.
