Moldovan government commits to cleaning up banking sector

By bne IntelliNews November 10, 2016

Moldova has pledged, under the Memorandum of Economic and Financial Policies (MEFP) published on November 9, to enhance the central bank’s powers and enforcement capacity to identify banks’ ultimate beneficial owners and related-party lending.

The three-year programme recently agreed by the International Monetary Fund (IMF) with Moldova focuses on thorough cleaning of the banking system, while providing guidance and financing to the government on streamlining the economy in particular public finances and the state owned companies.

Specifically, the Moldovan authorities will identify the owners of the banks and will evaluate banks’ lending to entities related to the owners.

Actions already taken have put the country on track to identify the actual owners of the major banks, involved in the past in money laundering and more recently in the siphoning off of $1bn from three banks, later repaid from the central bank’s reserves.

Sound financial institutions operating within a strong regulatory and supervisory environment will allow banks to exit special supervision, and restore their role in supplying credit to productive sectors, unlocking stronger economic growth, the government envisages in the MEFP. 

The Moldovan authorities have committed to properly identify the ultimate beneficial owners (UBOs) of the three largest banks (Moldova Agroindbank, Moldindconbank and Victoriabank) by end-December 2016 and in all banks by end-June 2017 (structural benchmarks). The UBOs of the fourth and fifth largest banks that are not subsidiaries of foreign banking groups, will be identified before end-March 2017.

The UBO identification process will be followed by an identification and unwinding of loans to related parties.

Related Articles

EBRD says 2016 net profit was around €1bn

The European Bank for Reconstruction and Development (EBRD) said it made a net profit of around €1bn in 2016, up by a quarter from the €802mn it made in ... more

Moldova’s pro-Russian president seeks new powers to dissolve parliament

Moldova’s President Igor Dodon has submitted to parliament a bill intended to give himself more powers to dissolve the legislative body. If the bill is not endorsed by lawmakers by March 24, the ... more

Moldova’s government drops plans for controversial fiscal amnesty bill

The Moldovan government has withdrawn a bill on capital liberalisation and fiscal amnesty, which was broadly seen as aimed at legalising the fortunes accumulated by fraud in recent years.  ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss