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The NBM has begun the development of the Regulation on Emergency Liquidity Assistance, which will contain new principles and conditions for assistance.

The NBM has begun the development of the Regulation on Emergency Liquidity Assistance, which will contain new principles and conditions for assistance.

As noted by the NBM, this is due to the fact that on September 2, 2019, amendments to the Law on the National Bank of Moldova entered into force, according to which only solvent and viable banks will be able to receive liquidity assistance in emergency situations from the National Bank, at its discretion and at the established them conditions. The amendments abolished the provisions of the law on public debt, state guarantees and state lending, which allowed the government to guarantee emergency liquidity assistance with government securities or state guarantees issued by the government for this purpose. In this context, it is necessary to update the regulatory framework of the NBM regarding emergency liquidity assistance in order to bring it into line with the above laws and other relevant laws that mention this form of assistance provided to banks by the National Bank as a lender of last resort. The Regulation on Emergency Liquidity Assistance will establish the principles, conditions and procedure for providing liquidity assistance, the categories of assets that can be accepted as guarantees when issuing funds, as well as the procedure for establishing and providing guarantees and other aspects related to the application and use this tool. To increase the efficiency of the development of the document, the NBM asks interested parties to submit their proposals and recommendations on it by September 24. // 10.09.2019 - InfoMarket.

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