The CNPM met with the management of the BNM


On October 2, 2017 representatives of the CNPM with the management of the National Bank of Moldova. Monetary policy is important to promote the economic development of the Republic of Moldova and represent along with economic and budgetary policy, tools of active influence on the pace of development of the national economy.

Reasons for the organization of the meeting served the statistical data that characterize the current evolutions of the countrys economy. Thus this year because of interventions of NBM on the foreign exchange market about 4,7 millions of MDL were put into circulation without coverage in goods or services. This amount represents about 46% of the volume of new credits offered by the commercial banks. This reality intervenes after the BNM in 2014-2015 has put into circulation over 13,4 MDL similarly, without covering in goods or services, trying to combat the negative effects of the banking crisis. Simultaneously during this year, we can see a fast increase in value of the national currency compared to the reference currencies (currencies of trading partners). The Moldovan leu has risen against the US dollar with 12%, to the Russian ruble with 9%, Ukrainian hryvnia with 9%, to the Romanian leu with 2% and to euro with 1%. In addition, the volume of non-performing loans in the banks’ portfolio is growing. At the end of August debt balance on loans diminished by 2% compared to the value at the beginning of the year, indicating the slowdown in economy crediting and significantly increased the debt balance on non-performing loans (+6%). The mentioned aspects show from NCEM perspective that there is a too restrictive monetary policy promoted by NBM and which negatively influences business performance.

“International practice, though subtle, shows us that a “cheap” credit and an undervalued exchange rate of the national currency are factors that can essentially contribute to the development of local economic agents”, considers Viorel Girbu, economic expert at CNPM.

“We would like to establish collaborative relationships with BNM in order to explain what issues the business environment has. At the same time, we would like to be informed about the forecasts of the central bank and to have a better visibility regarding the anticipated monetary policies to be able to intervene with corrections to the enterprises under our management”, said the Deputy President of CNPM, Ion Prisacaru.

“We are ready to sit down at a table and talk at any time, to get involved, to create work groups, in order to understand the problems and search solutions with the condition that these respect the requirements of the prudential supervision policy of banks”, concluded members of the Executive Committee of BNM.

During the meeting agreed to organize on a regularly basis meeting between BNM and CNPM in order to facilitate the mutually beneficial dialogue and the next meeting will be held in November after which the discussions among NBM and NCEM will be organized quarterly.