August 12 (SeeNews) - The European Bank for Reconstruction and Development (EBRD), a shareholder in Moldova's Victoriabank, said on Wednesday it is seriously concerned by an indictment issued by Moldovan prosecutors against Victoriabank in connection with a 2014 banking fraud in the country.
The EBRD has also learned with serious concern about the recent court warrant authorizing the Anticorruption Prosecutor's Office to seize assets of Victoriabank in the framework of the investigation of the fraud, it said in a statement.
"The EBRD as a shareholder in Victoriabank welcomes the bank’s cooperation with the Moldovan authorities in their investigation of activities which occurred before Banca Transilvania became a shareholder in January 2018 and the transparency of Victoriabank’s shareholding was restored," it said.
The EBRD said it trusts that the investigation will respect clients and customers of Victoriabank as well as its current shareholders, and be carried out in accordance with due process and due consideration of potential consequences for the Moldovan banking system.
"Failure to do so risks destabilizing the entire financial sector with grave consequences for Moldova’s economy," the EBRD noted, adding that today Victoriabank is a strong financial institution, managed according to high corporate governance standards and working to the benefit of the Moldovan people, businesses and the economy.
"As the largest institutional investor in Moldova, the EBRD regards a strong and stable banking sector a prerequisite of financial stability and as one of the pillars of sustained economic development and growth," the EBRD said.
On Monday, Victoriabank said that it is open to collaborating with authorities in an investigation related to its alleged involvement in a 2014 banking fraud in which about $1 billion (850 million euro) went missing from three of Moldova's private banks.
Banca Transilvania (BT) and the EBRD will resort to all legal means to protect Victoriabank, according to the statement issued shortly after local media published a document saying that a Moldovan court has granted a prosecutors’ request to seize Victoriabank's assets worth around 2.3 billion Moldovan lei ($138 million/118 million euro).
Local new portal deschide.md reported on Monday that prosecutors are planning to seize cars, real estate and government securities owned by Victoriabank in order to cover the prejudice caused by criminal deeds related to the 2014 banking fraud.
The general prosecutor's office said in a statement on August 5 that it is still investigating the fraud and will disclose further information when possible. The prosecutors did not name any persons or companies being investigated.
Since 2018, Banca Transilvania - Romania's largest bank by assets as at the end of 2019, and EBRD hold 72.19% of the share capital of Victoriabank among themselves.
BT owns 44.6%, while EBRD owns a 27.5% stake. The remainder is owned by four individuals - Victor Turcan, Valentina Turcan, Elena Artemenco and Galina Proidisvet, according to data published on the website of Victoriabank.
Victoriabank was Moldova's third largest lender by assets as at end-June 2020, central bank showed. The lender says that it has over 270,000 active clients and 100 subsidiaries across the country.
Moldova is still trying to recover from a massive banking fraud in 2014, when Banca de Economii, Banca Sociala and Unibank collapsed and were liquidated.
(1 euro=19.6183 Moldovan lei)
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