The level of coverage of deposits in the banking system of Moldova will increase in 2023 to 100 thousand lei, and in 2025 - up to 200 thousand lei.
This is stipulated by a new draft law on deposit insurance in the banking system, passed by the parliament on Thursday in the second reading. The document is aimed at transposing into the Moldovan law the provisions of the EU Directive in this area. The draft law was elaborated by the government in order to consolidate the existing legal framework in the deposit guarantee field, bring it in line with the best international practices and contribute to the country's financial stability through timely payment of guaranteed deposits and accumulation of necessary funds for the banking resolution. The law contains 8 sections and the concepts used in it are harmonized with European ones. Also, the law transposes regulations 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 process. According to the draft law, all Moldovan banks will 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 when the new law comes into force the level of coverage shall be 200 thousand lei. It shall be calculated for each depositor and for each participating organization, regardless of the number of deposits belonging to the respective depositor, the size and currency of these deposits. Deposits in foreign currency shall be guaranteed with the payment of their equivalent in Moldovan lei (MDL), calculated at the official exchange rate set 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. Contrary to the current legislation it is proposed to reduce the term for initiating a payment from 12 days to 7 days. Also, the draft law stipulates the possibility to obtain loans from both the National Bank of Moldova and the Ministry of Finance. The document includes provisions resulting from recommendations provided by international experts within the technical assistance programs provided to Moldova. //22.06.2023 - InfoMarket.
