Central bank governor suggests replacing Administration Board

The governor of the National Bank of Moldova Dorin Dragutanu proposed replacing the Administration Board with two bodies – the Supervisory Board and the Administration Committee, Info-Prim Neo reports. Dorin Dragutanu presented a relevant bill to the Parliament’s legal commission for appointments and immunities. Under the bill, a Supervision Board will be created at the central bank. Many central banks in European countries have such boards. “Such a body is needed so that the people do not say that the governor takes decisions without consultation,” said the governor. The Supervisory Board will consist of seven members – four persons who will not be employees of the bank and the three members of the Administration Committee – the governor and the two vice governors of the National Bank. Two of the four members who will not be employees of the bank will be named by Parliament, one by the head of state and another one by the Government. Dorin Dragutanu said the Board will also take decisions concerning the salaries of the central bank’s personnel and the rise in the bank’s budget, when need be. The chairman of the Liberal Party Mihai Ghimpu did not back the project, saying it’s not right for a Supervisory Board to be able to take decisions. “The four members who will be named by Parliament, the Government and the President will politicize these posts,” he stated. Other members of the commission also opposed a number of provisions of the bill, especially the fact that the three members of the Administration Committee will also serve on the Supervisory Board, as there will be a conflict of interests. The lawmakers postponed taking a decision on the bill, asking the governor to modify it.