Building the people’s confidence in the system will be the major goal that the National Bank of Moldova will pursue during the next two years, especially because the situation in the financial-banking sector is difficult. One of the methods of contributing to the achievement of this objective is to continue firmly implementing the central bank’s commitments deriving from the Association Agreement with the EU, especially as regards the circulation of capital. These are the main conclusions of a thematic analysis carried out by economists of the Institute for European Politics and Reforms, who examined the bill to amend the Law on Currency Regulation, IPN reports.
According to the authors of the study, the testing of the liberalization in the notification of loans provided to nonresidents by instituting a cap of €10,000 instead of the current €50,000 is welcome.
The bill allows the National Bank of Moldova to limit the foreign currency withdrawals from bank accounts in periods of financial crisis. Economist Eugen Giletski said that even if the macroeconomic stability must be a priority for any state, when there is no framework to offer financial safety to the people, the introduction of restrictions on the withdrawals of foreign current could create real chaos.
The study author says the state guarantees less than €270 of the deposits of private individuals, which is 370 times less than the European norm of €100,000. “The introduction of new safeguarding measures in such conditions will contribute to the deterioration of confidence in the banking system,” stated Eugen Giletski.
The economists said the National Bank of Moldova showed a firm commitment to implement the Association Agreement, transposing directives and regulations of which it is responsible. These suggest introducing provisions that would prevent cartel agreements in the modification of the currency exchange rates during the day, increasing the guarantee for the deposits of private individuals and extending the given provision to legal entities so as to build confidence in the banking system.
