Moldova’s parliament appointed former finance minister Octavian Armasu as central bank governor for a seven-year term, in a quick move made on November 29, one day before the end of its four-year term.

Armasu replaced Sergiu Cioclea, who unexpectedly resigned on November 20, effective November 30. Cioclea had been appointed through a selection process that took more than five months in March 2016.

An engineer by education, Armasu earned his CFA in 2006 and worked for 12 years as CFO of Sudzucker Moldova, prior to being appointed as finance minister in 2016.

On announcing his resignation, Cioclea said that “the reforms were completed” — although Moldova’s second-largest bank Moldindconbank (previously involved in the Russian Laundromat) is still seeking a strategic partner and Moldova is still trying to recover the money lost in the $1bn bank frauds.

According to rumours circulated by the media, Cioclea did not want to have his name associated with the voluntary tax compliance bill endorsed by the ruling coalition, a bill critics claim potentially opens loopholes in favour of those wanting to clean their wealth, including money from the $1bn bank frauds that surfaced in 2014-2015.

Armasu has already commented on some of the critical issues facing the bank as he takes on the governorship. 

Asked whether the central bank will make public the second Kroll report on the $1bn bank frauds, Armasu said that the report is not the central bank’s responsibility.

“The National Bank does not have this report. It is in the prosecutor's office. The National Bank cannot publish this report,” he explained.

Armasu will also have to address the issue of the voluntary tax compliance, which he promoted as finance minister despite criticisms from international monetary institutions. While it has provisions to avoid loopholes for those responsible for the frauds in the banking sector and other corrupt acts, the benefits of such a bill (already endorsed by the government and even amended once upon the recommendations of the International Monetary Fund) is highly questionable.