Situation in the banking system

In recent weeks a number of indicators in the banking system have seen improvement, stated Victor Cibotaru, the vice governor of the National Bank of Moldova.

In May and June personal savings rose 1.8 percent after they fell 7 percent in April, as the balance of loans also rose by 0.2 percent, he said.

Cibotaru stressed that there's enough liquidity in banks as excess reserves in national currency constitute over 600 lei.

“Besides that, the NBM approved a decision at the end of May to provide financing to banks, with a view to re-credit the real sector of the national economy. At a first stage, it was decided that the amount would be 650 million lei. The first contracts with the commercial banks have been wrapped up allowing them to receive more than 100 million lei. The interest on those loans is no bigger than 13.5-14 percent, 15 percent at the most, including the commission”, said Cibotaru.

He added t hat the currency market is now stable due to the increase in the offer of foreign currency. Additionaly, the NBM bought in recent weeks some $70 million increasing its reserves to $1.2 billion.

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