The National Bank of Moldova will only bail out viable and solvent banks facing temporary liquidity issues, under a draft legislative amendment approved by the Government.
Under the proposal, the bail-out loans will be guaranteed with the assets of the banks in question or with government bonds. For any liquidity assistance guaranteed with government securities, the terms shall be subject to prior approval by the Ministry of Finance.
The Bank is to draft the protocol and rules for the issuance of liquidity assistance.
The measure is expected to increase the transparency of the procedure, in line with the fundamental role of the central bank, that of ensuring the stability of the financial and banking system.
