Fixing the situation in the banking system is a priority for the new Cabinet, Prime Minister Valeriu Strelet assured during the Public Space talk-show on Radio Moldova. According to him, the rise in prices for bread and other essential goods are consequences of the banking crisis, IPN reports.
The PM says that it's not enough to increase the mandatory reserves for banks and the base interest rate, measures which he thinks the National Bank may be taking out of desperation. On the contrary, Strelet fears these steps are suffocating the economy and businessmen won't be able to borrow because of the rising interest rates.
The head of government expects that, after a new collaboration program is negotiated with the International Monetary Fund, foreign investors will come to Moldova and will use the freed up space and qualified staff of the three problematic banks, which are to be liquidated. “Attracting investors from abroad with a sound reputation in the Moldovan banking system would be a great premise for the long-term amelioration of this sector”, stated Strelet.
However, he admitted that it would take about half a year to restore normality.
