IMF and WB to identify assistance needs to promote economic and financial stability in Moldova

In the period from September to October 2007, experts from the International Monetary Fund and the World Bank will conduct assessment missions in Moldova to update the Financial Sector Assistance Programme and identify assistance needs to promote economic and financial stability. Recently, the Administration Board of the National Commission for Financial Market held meetings with IMF Resident Representative Johan Mathisen, with the representative of the US Agency for International Development, Rick Dorin, and with Victor Burunsus, representative of the World Bank Office in Moldova, who appreciated the initiatives of the Commission. The foreign officials expressed availability to further assist the government in developing the capacities of the recently created financial megaregulator and in achieving the main objectives of aligning the legal framework of the nonbank financial market in Moldova with international standards. According to the new legislation, the nonbank financial market in Moldova will be regulated by a single agency (the megaregulator) – the National Commission for Financial Market (CNPF). The new body is successor of the National Securities Commission (CNVM). CNPF will authorise and regulate the activity of the participants in the financial nonbank market and will supervise their compliance with the legislation. The main goal of the Commission will be to strengthen stability, ensure transparency, security and efficiency by adopting and maintaining a regulatory framework for supervising the participants in the financial market in order to reduce the risks as well as prevent anti-competition practices. The new commission will work out together with the Government the Nonbank Market Development Strategy; will issue, cancel or suspend licenses and authorisations for the professional participants in this sector. The authorities say that the reform will be an incentive for the development of the nonbank financial market. Furthermore, the reform aims to create fair competition rules in the banking system. The banking system will still be regulated by the National Bank. Thus, after the reform is implemented, there will be two regulator agencies of the financial market.