The National Bank of Moldova put forward a bill to amend the Law on Currency Regulation for public debates in connection with the creation of the Free Trade Area with the EU. The bill envisions the liberalization of currency operations that must be authorized by the National Bank (with small exceptions) in the amount of up to €10,000 (or the equivalent in Moldovan lei), IPN reports.

If the given amendments are adopted, the banks (resident or nonresident) will have the right to take into or out of Moldova, without the central bank’s authorization, cash in national currency of up to 100,000 lei. The nonresident banks will be able to take into or out of Moldova the equivalent of the same sum in foreign currency.

The bill also allows not notifying of loans and guarantees received from nonresidents in the amount of up to €50,000 (or the equivalent). As a safeguarding measure, the bill envisions the banning or limitation of operations to withdraw foreign currency from accounts in foreign currency in case of a system financial crisis.

The bill also enables the client of a currency exchange facility to demand stopping the currency exchange operation until the operation is completed and within 30 minutes of its completion, during the working program of the facility. The period of validity of the licenses issued to currency exchange facilities and hotels that have such facilities is extended from five years to an indefinite period of time. For currency exchange facilities, the license tax will rise from 2,500 lei to 12,000 lei, while for hotels will be 6,000 lei given that the hotels perform only operations to buy foreign currency.

In a move to increase the efficiency of the penalty that consists in the withdrawal of the license, imposed by the central bank, the bill suggests extending the period during which a currency exchange facility will be unable to submit a new application for being issued with a license from two months to 12 months. Also, the shareholders, associates or administrators of currency exchange facilities will lose the right to set up a new such facility or to attract new participants in the registered capital of any of the facilities during 12 months.

Proposals to the given bill can be submitted by April 27.