On Converting into State Debt the Emergency Loans Granted by NBM in 2014/15 to Certain Commercial Banks
On Converting into State Debt the Emergency Loans Granted by NBM in 2014/15 to Certain Commercial Banks

Author(s): Adrian Lupuşor, Dumitru Pîntea
Subject(s): Financial Markets, Public Finances
Published by: EXPERT-GRUP Centrul Analitic Independent
Keywords: State Debt;
Summary/Abstract: Considering the complexity and sensitivity of the subject dealt in this note, the authors come with the following 3 clarifications: * The ultimate problem refers to the solution agreed by decision makers in the case of the three problematic banks. The solution consisted in empowering the Government to secretly issue state guarantees for the emergency loans granted by NBM through the procedure of assuming responsibility towards the Parliament. Respectively, the responsibility assumed by the Government on 26 September 2016 is the result of commitments undertaken along with the issuance of the guarantees in 2014 and 2015. // * This note does not aim to directly attack the Ministry of Finance or the National Bank on Moldova, which finally were constrained to execute the provisions of guarantees issued in 2014 and 2015. // * However, we believe that the Parliament, the Presidency and governing policymakers could have made much more effort to identify alternative solutions, at least by testing the constitutionality of guarantees issued in 2014 and 2015 and conducting consultations with civil society and relevant experts.

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