National Bank of Moldova proposes liberalisation of currency operations in line with EU requirements

Chisinau, 14 April /MOLDPRES/ - Some currency capital operations will be liberalised in line with Moldova's commitments in the context of the Association Agreement with the European Union, according to amendments to the law on currency regulation, proposed for public consultations by the National Bank of Moldova (BNM).

Under the draft, the currency operations subject to authorisation by BNM (with some exceptions), amounting to up to 10,000 euros or their equivalent, will be liberalised. Residents will have right to carry out, without authorisation of the Central Bank, operations with financial instruments issued by the international organisations, no matter the sum.

The National Bank propose to fully liberalise the operations with financial foreign instruments, carried out by licenced banks and entities, the activity of which is regulated and supervised by the National Financial Market Commission (CNPF). Among these entities, there are insurance societies, investment societies, microfinancing organisations. The draft's authors said these changes were possible due to the fact that these institutions were under the supervision and control of BNM and CNPF, as well as the present legal framework had been permanently improved, including in the context of adjusting to the European Union's standards.

Also, the draft sees liberalisation of licenced banks providing presently insignificant credits to non-residents. Thus, in late last year, the stock of credits provided by licenced banks to non-residents accounted for less than one per cent of the overall credits.

There is no danger for the demand of foreign firms "to grow," as the interest rate is smaller in Moldova against the one applied abroad, BNM has said. At the same time, neither the banks will be willing to provide large sums to foreigners, as it is difficult to watch assets pledged by non-resident.

The draft law establishes the right of the banks (resident and non-resident) to introduce in/take out of Moldova, without BNM's authorisation, cash in Moldovan lei worth no more than 100,000 lei. The non-resident banks will be able, in their turn, to introduce in/take out of Moldova, without BNM's authorisation, cash in foreign currency. Presently, the concerned operations need authorisation of the National Bank.

(Reporter V. Bercu, editor A. Raileanu)