The rapid increase in real estate prices and the expansion of lending could pose risks to the financial stability of the Republic of Moldova. This is highlighted in a report by the International Monetary Fund on the stability of the country’s financial system, reports IPN.

According to IMF experts, in 2024 and in the first half of 2025, housing prices increased by approximately 25%, due to the increase in demand, the reduction in interest rates, and government support programs for mortgage loans. At the same time, lending has accelerated.

In the middle of the year 2025, the volume of loans granted to the private sector was growing at approximately 30% annually, the fastest pace in the last decade. The IMF emphasizes that such growth rates require increased attention from regulatory authorities.

The rapid expansion of mortgage loans and the increase in housing prices can enhance the vulnerability of the banking system, especially in the event of a sudden correction in the real estate market. At the same time, experts mention that the banking system of the Republic of Moldova remains, in general, stable, due to the high level of capital and liquidity.

However, further strengthening of macroprudential policies could contribute to reducing the risks associated with overheating of the real estate market. The report was prepared under the Financial Sector Assessment Program and is based on the assessment of the financial system of the Republic of Moldova carried out in 2025.