SLAs attract less money from population

The number of members of savings and loan associations (SLAs) has increased by 7% this year, to 125,000. The loans granted by them add up to 9,000 lei on average per debtor– the same level as last year. The money attracted by the SLAs from the population fell by about 30% compared with the corresponding period last year, Info - Prim Neo reports. Alina Cebotariov, director of the Microfinance and Collective Placements Department of the National Commission on the Financial Market (CNPF), explained the decline by the lower incomes earned by the rural population. The loan portfolio of the SLAs this year fell by 18% to 490 million lei. “The crisis and its consequences made the savings and loan associations be more prudent when releasing loans and analyze the clients’ credit worthiness more thoroughly. On the other hand, the banks and microfinance organizations that lend money to these associations reduced the lending volumes so that the SLAs now have fewer resources for on-lending,” Cebotariov said. She spoke about the measures taken by the CNPF to strengthen the SLA system, mentioning the approval of the regulations concerning the norms of financial prudence, which specify the minimum value of the institutional reserves and liquidity and explain how the assets and debts should be managed and how to limit crediting risks. The regulations on the reorganization of SLAs came into force last month. They say that the given institutions can be reorganized by fusion or dismemberment. The CNFP’s regulations on the presentation of reports by the SLAs are being finalized. According to them, the associations that do not attract money from the population are to file reports quarterly and yearly, while those that attract money and the central associations – monthly. There are 400 savings and loan associations in Moldova at present. About 100 of them attracted savings from their members.