The National Bank of Moldova (BNM) and the Ministry of Finance will implement new regulations concerning the sale and redemption of state-owned securities from July 1.

Contacted by IPN, the head of the National Bank’s Market Operations Division Nina Savin said the new regulations required the adjustment of the bank’s electronic platform to new software for holding auctions. Thus, from March 1, all the auctioning operations and the operations on the interbank currency market are done through the Bloomberg software.

“Form July 1, based on the Bloomberg platform, the BNM will perform transactions with state-owned securities on the primary market. Under the legislation, the BNM is the fiscal agent of the state that sells state-owned securities on the primary market for the Ministry of Finance. Earlier, this was done by software designed by programmers of the BNM, but now through the Bloomberg platform,” said Nina Savin.

She also said that the regulations substitute the instruction that has been used until now. 85% of the state-owned securities will be placed on the primary market by competitive bids (65% until now), while 15% by non-competitive bids.

“These changes will contribute to improving the process of forming the market price. A larger volume of state-owned securities will be sold by competitive bids,” said Nina Savin.

Another amendment liquidates the commission for determining the auction results. “Earlier, specialists of the BNM and the Ministry of Finance came together, discussed and took decisions. Now there will be a secured electronic method. The information from the BNM to the Ministry of Finance and inversely will be sent electronically,” stated Nina Savin.

According to her, the changes will enable the Ministry to take decisions much quicker, while the participants in auctions to sell state-owned securities will know the results of the auction much faster. The participants will be able to know if their demand was satisfied and which bid was accepted.