A new law will be approved in Moldova on deposit guarantee in the banking system: the level of deposit coverage will grow up to 200 thousand lei.
The relevant draft law was elaborated in order to strengthen the existing legal framework in the field of deposit guarantee, bring it in line with the best international practices, as well as to contribute to the financial stability of the country through timely payment of guaranteed deposits and accumulation of necessary funds for bank resolution. The law contains eight sections and the concepts used in it have been harmonized with the European one. Also, the law transposes the provisions on eligible deposits, as well as the procedure for determining the amount of compensation to be granted to each depositor in case a bank is in forced liquidation. According to the draft, all Moldovan banks will have to have the status of participant of the Deposit Guarantee Scheme - a system created for paying compensation to depositors in case of unavailability of their deposits. To ensure creation and functioning of the Deposit Guarantee Scheme, the Bank Deposits Coverage Fund will be created as a fund independent from financial resources, without forming a legal entity. It will be managed by the current Deposit Guarantee Fund in the banking system. The document stipulates that on the date of entry into force of the new law, the level of coverage shall be of 200 thousand lei. It will be calculated for every depositor and for every participating organization, regardless of the number of deposits held by the depositor, the size and currency of these deposits. Deposits in foreign currency shall be guaranteed by paying the equivalent in Moldovan lei (MDL), calculated at the official exchange rate established by the NBM on the date of deposit inaccessibility. At the same time, certain categories of deposits will have a coverage level of 200% within 3 months after the amount is deposited or from the date when it can be legally transferred: deposits of individuals originated from real estate transactions; amounts deposited as settlements or compensations following divorce, retirement, dismissal, disability, death; deposits of individuals originated from insurance compensations or compensation for damages deriving from crime or illegal conviction. The target level of the Bank Deposits Coverage Fund envisaged by the draft is 4% of the total amount of guaranteed deposits registered in the banking system, which will be reviewed at least once every 3 years. Consultations on the draft are held until January 19: https://particip.gov.md/ro/document/stages/proiect-de-lege-cu-privire-la-garantarea-depozitelor-in-banci/9915. // 18.01.2023 - InfoMarket
