Moldova’s central bank governor resigns saying “reforms were completed”

By bne IntelliNews November 21, 2018

The governor of the National Bank of Moldova (NBM), Sergiu Cioclea, announced his resignation on November 21 saying that he had “fulfilled his mission".

However, the challenges ahead of the country’s banking system are still high. Financial intermediation remains subdued, the country’s second-largest bank has no major owner and the recovery of the $1bn stolen from the three banks before 2015 seems less likely than it seemed at Cioclea’s arrival.

Furthermore, the central bank released a three-year strategy on the same day that Cioclea sent his resignation to the parliament, the body that appointed him and is supposed to appoint his successor as well. Finally, political volatility has increased ahead of the parliamentary elections next February.

Cioclea was appointed as central bank chief in March 2016, after the theft of $1bn that surfaced in late 2014 pushed three of the country’s banks into bankruptcy, dramatically weakened the local currency (which fuelled inflation) and forced the government to pay to the central bank the stolen money (more than 10% of GDP) by issuing government bonds.

Cioclea said that his successor might be one of the two vice governors, Cristina Harea or Ion Sturzu.

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