In Moldova, the level of coverage of deposits in the banking system will be increased to 100 thousand lei in 2023 and to 200 thousand - in 2025.
This is envisaged by the draft of the new Law on guaranteeing deposits in the banking system, which the Parliament adopted on Thursday in the first reading. The document is intended to transfer to the Moldovan legislation the provisions of the EU Directive in this area. The draft law was developed by the government to strengthen the existing legal framework in the field of deposit guarantees, bring it in line with international best practices, and promote the country's financial stability through the timely payment of guaranteed deposits and the accumulation of necessary funds for a bank resolution. The law contains 8 sections, and the concepts used in it are harmonized with European ones. The law also transposes provisions on eligible deposits, as well as the procedure for determining the amount of compensation that is provided to each depositor if the bank is in the process of forced liquidation. According to the bill, all Moldovan banks will have to have the status of a participant in the Deposit Guarantee Scheme, a system created to compensate depositors if their deposits become unavailable. To ensure the creation and operation of the Deposit Guarantee Scheme, the Bank Deposit Coverage Fund will be established as a fund independent of financial resources, without establishing a legal entity. It will be managed by the current Deposit Guarantee Fund in the banking system. The document provides that on the date the new law comes into force, the level of coverage should be 200 thousand lei. It is calculated for each depositor and for each participating organization, regardless of the number of deposits owned by the respective depositor, the size and currency of these deposits. Deposits in foreign currency are guaranteed by the payment of their equivalent in Moldovan lei, calculated at the official exchange rate set by the NBM on the date of determining the unavailability of deposits. At the same time, some categories of deposits will have a coverage level of 200% within 3 months after the amount is credited or from the date when they can be legally transferred: deposits of individuals resulting from transactions with residential real estate; amounts deposited as settlements or compensation as a result of divorce, retirement, dismissal, disability, death; hoards of natural persons resulting from the payment of insurance indemnities or compensation for harm caused by a crime or unlawful conviction. The target level of the Fund for Covering Bank Deposits envisaged by the project is 4% of the total volume of guaranteed deposits registered in the banking system, which will be reviewed at least once every 3 years. Contrary to the current legislation, it is proposed to reduce the time for initiating a payment from 12 to 7 days. In addition, the bill provides for the possibility of obtaining loans from both the National Bank of Moldova and the Ministry of Finance. The document includes provisions arising from the recommendations presented by international experts within the framework of technical assistance programs provided to Moldova. The draft of the new Law on guaranteeing deposits in the banking system must be approved in the second reading. //13.04.2023 — InfoMarket.
