A robust central bank governance framework and strong balance sheet underpin price and financial sector stability, which are fundamental for sustainable economic development, stated Volodymyr Tulin, IMF Resident Representative in Moldova. In a statement released today, the official said the IMF has always placed an utmost importance on the issue of central bank institutional and policy independence.

“Legal reforms enacted in the aftermath of the 2014 banking crisis and supported by the IMF have strengthened the NBM’s governance structure and autonomy. The existing governance framework rests on adequate mechanisms for dismissal procedures of the NBM management.

“Securitization of the 2014-2015 emergency lending to the troubled banks has been imperative to ensure a viable balance sheet and hence NBM’s capacity to fulfill the mandate of maintaining price and financial stability. It remains vital to protect the hard-earned progress and avoid any initiatives that would weaken existing safeguards”, reads the statement.

Volodymyr Tulin concluded the statement by saying the IMF will be closely monitoring developments in this area.