Central Bank Gov. dismisses reports that banks stopped lending

Moldova's National Bank Governor Leonid Talmaci has dismissed reports that commercial banks have stopped lending money to businesses. “The banks are continuing to offer loans, because otherwise it wouldn't make sense”, said he, quoted by Info-Prim Neo. Talmaci noted that the central bank's most recent report – for May – have shown increases in the banks' balance of deposits as well as of credits. “If a client was refused lending, maybe the plan was not feasible or the security insufficient. But there's no reason for the banks to set money aside and keep it as deposits”, Talmaci offered. He stated that the banking system “is healthy” and that cases where banks have raised the interest rates on deposits up to 21 or even 24 percent per annum is a proof of a sound competition on the banking market. Talmaci added that the policies promoted by the central bank do not aim to support a certain category of businesses, but to create fair rules of play for all the participants, that is, a favorable business climate. “They say a stronger leu affects exporters, for instance. But several years ago when the exchange rate soared from 4.5 lei per 1 dollar to 12.14 lei per 1 dollar these entities made profit, and a huge one, too. Where did this money go? Why do we require the banks to keep reserves and risk funds? But where are the exporters' risk funds? The banks do lend , but not for fantastic plans, because they are also businesses and are also looking to make a profit”, the NBM Governor concluded.