The governor of the National Bank of Moldova Sergiu Cioclea considers the year ends better than it started. The exchange rate of the leu has stabilized this year. Inflation decreased, while the economy shows signs of recovery. The base rate, which is a thermometer of the economy, was cut from 19.5% to 9%.

“So, as a doctor, I would say that the conditions of convalescence are present. Now the banking system surely reacts to the improvements in the business sector with a particular delay. In fact, in 2016 we see the problems accumulated in 2014-2015, which were difficult years, in the balance of the banks. First of all, there was a powerful drought in that period. The interest rates increased a lot and lending activity diminished. This is a big problem as lending is the main function of the banks,” the governor stated in an interview for Radio Free Europe, quoted by IPN.

Sergiu Cioclea believes 2016 was a turning point for the banking system because the reforms initiated by the previous administration ultimately acquired a systemic framework in the agreement with the International Monetary Fund. “If we manage to do what we aim by this accord, I assure you that 2016 and 2017 will be years of real transformation of the Moldovan banking system,” he said.

As to the three banks that are under special supervision, the governor said that at the end of 2015 these were controlled by independent teams. There were carried out so-called diagnosis studies that revealed all kinds of problems. These banks proposed remedying plans that were validated by the National Bank of Moldova and are now being implemented. All the three are now in a period of convalescence.

In another development, Sergiu Cioclea said it is regrettable that Moldova took part in that ‘Russian laundry,’ alongside many other countries, including EU ones, where the mechanisms for fighting money laundering should have worked much better than in Moldova. “We must admit out mistakes and should not singularize ourselves in this global problem,” he stated.