“The partial distribution of the profit made by the National Bank of Moldova was discussed by the NBM, the Government and the International Monetary Fund and, in the agreed conditions, meets the international standards concerning capitalization of central banks,” the National Bank said following President Igor Dodon’s announcement that a part of the Bank’s profit will be directed to the state budget for covering the sums that the citizens must pay as a result of the adoption of the so-called “billion law”, IPN reports.
According to the National Bank, the solution is balanced and will enable to gradually accumulate the capital that is needed by the NBM to exercise its mandate and to diminish the burden on the state budget by distributing profit to this.
Such a move is possible by amending the law on the National Bank of Moldova so as to introduce a model of gradual and partial distribution of profit to the state budget until a level of 10% of the Bank’s capital is reached. “This will be in accordance with the international practices and can ensure a balance between the distribution of profit to the state budget and the gradual capitalization of the National Bank,” says the NBM’s comment.
A part of the central bank’s profit will be directed to the state budget so as to cover the costs made the people’s burden by the so-called “billion law”. According to President Igor Dodon, the measure forms part of a bill that provides for the reduction of the burden borne by the people. The bill will be examined by the Government this week and will be presented to Parliament for adoption.
The package of laws by which the money stolen from the banking system was converted into state debt was adopted in 2016.
