IMF insists on recapitalization of Moldovan savings bank

The International Monetary Fund recommends carrying out the recapitalization of Banca de Economii (BEM) to the needed level, International Monetary Fund Resident Representative to Moldova, Tokhir Mirzoev, told journalists.      

He said that the recapitalization is an exhaustive measure that would help solve the problems of the bank, at least in the short-term perspective.

«It is necessary to increase the authorized capital stock of the bank in order to consolidate its financial situation,» said Mirzoev.   

Mirzoev said that the exact amount must be established by the Government, jointly with the National Bank of Moldova.   
 
«The approximate figures have been named by the National Bank of Moldova. I don’t want to comment and to say which of these figures are right and which are wrong. The recapitalization is needed in order to adjust the capital to the required level. Secondly, the recapitalization will allow the bank carrying out adequate credit activities, which will not be restricted by the existent volume of capital. Thirdly, it is necessary to give the bank enough time to implement internal reforms, management reforms, as well as reforms of its loan policy. These measures are needed to ensure the stability of the bank, in the long-term perspective,» he said.    

International Monetary Fund Resident Representative to Moldova, Tokhir Mirzoev refused to comment the decision of the bank’s Administrative Council on the sale of a part of the bad loans, reasoning this by the «lack of details of this deal.» He repeated that the single correct decision at the current stage – is the recapitalization of the bank.    

Adapted from Infotag