1 in 2 lei at Banca de Economii is unproductive

1 in 2 lei at Banca de Economii (BEM) is unproductive, said the governor of the National Bank of Moldova Dorin Dragutanu, who was Thursday questioned in Parliament. According to the governor, the situation at the bank worsened especially after 2009. 1 billion lei of the overdue loans of 1.4 billion lei were accumulated after 2009, Info-Prim Neo reports. The governor stressed that the overdue loans represent 55% of the BEM’s capital, the institution facing a client confidence crisis. Dorin Dragutanu said that the central bank repeatedly warned the government representatives in the bank’s Board about the irregularities identified in the lending activity and the risks of considerable related losses. “The dubious schemes were discovered by the National Bank, not by another state institution. The National Bank informed decision makers about the significant risks related to decapitalization,” said the governor. Dorin Dragutanu considers that the BEM should be sold to a strategic investor so as to remedy the situation at this institution. The lawmakers will also question Minister of Finance Veaceslav Negruta, vice president of the Administration Board of the National Financial Market Commission Artur Gherman, Deputy Minister of Finance Victor Barbaneagra, and Government’s secretary general Victor Bodiu over the situation at the BEM. At the suggestion of the Liberal leader Mihai Ghimpu, Prime Minister Vlad Filat will also come to provide explanations in Parliament.