The abolition of the so-called “law on the billion” is a very alarming signal for the development partners, investors, jeopardizing the credibility of Moldova in its ability to comply with financial obligations - NBM.
President of the National Bank of Moldova, Octavian Armasu, stated this while answering the questions of the Moldovan media. While expressing the NBM position regarding the abolition of the so-called “law on the billion” (the Law on the issue of government bonds pursuant to the Ministry of Finance's payment obligations arising from government guarantees), the head of the NBM stressed that the implementation of the government guarantee and prevention of the decapitalization of the National Bank through the issue of government securities was carried out to maintain the financial stability of Moldova, which is an element of protection of the financial and banking system required by the International Monetary Fund. According to him, the repeal of the law, the main purpose of which was to protect the public interest in maintaining financial stability, is a very alarming signal for development partners, local and foreign investors, jeopardizing the credibility of Moldova in its ability to comply with financial obligations. “In general, we warn that any initiative, materialized either in the form of bills or in public statements, the purpose of which is to abandon the obligations assumed by the state to protect the financial and banking system, as well as any possible attempt to revise the consequences of these obligations, can undermine not only the trust of Moldova's development partners, but also can reduce Moldova’s rating to a minimum,” stated the President of the NBM. He stressed that, thus, the efforts made in recent years in the process of multifaceted reforms, which aroused the interest of many strategic investors from abroad with an international reputation in Moldova, today risk being destroyed, and investment decisions will be postponed indefinitely. // 18.12.2020 - InfoMarket.
