As of January 1,2020 the bank Deposit Guarantee Fund will be increased to 50,000 lei, as opposed to 20,000 lei at present, IPN reports, with reference to a bill to amend a number of legal acts approved by the Cabinet.
The law was drafted in a move to improve the legal framework related to deposit guaranteeing and consolidation of the stability of the financial sector so that the national deposit guarantee system meets the fundamental international deposit guarantee principles.
Under the amendments, the Deposit Guarantee Fund as form January 1,2020 will also guarantee the bank deposits in national and foreign currencies made by legal entities of private law. Currently, there are guaranteed only the deposits of private individuals. As a result, the deposits of 3.8 million depositors will be insured and the insured sum will total 13.6 billion lei. This way, 95.9% of all the deposits and 23.1% of their total volume will be guaranteed.
The bill provides that the objectives of the fund and the system for setting the contributions for licensed banks based on risks will be periodically reviewed by also redefining the list of deposits that are not guaranteed.
The bill was drafted by the Deposit Guarantee Fund in concert with the National Bank of Moldova and the Ministry of Finance in accordance with the Memorandum of Understanding on the macro-financial assistance with the EU, the Memorandum on Economic and Financial Policies and the action plan for implementing the Moldova –EU Association Agreement for 2017-2019.
