November 13 (SeeNews) - Moldova needs to reform its banking sector in 2019 and meet key commitments under the reform programme advised by the International Monetary Fund, the European Bank for Reconstruction and Development (EBRD) said on Tuesday.
"Shareholder fitness should be restored at one of the country’s systemic banks as soon as possible. In order to shore up financial stability, the removal of opaque shareholders needs to be finalised in the second largest bank which remains under the temporary administration of the National Bank of Moldova," the EBRD said in its Transition Report 2017-2018.
Moldova's banking sector cleansing should be completed, the EBRD added. The new regulatory and supervision framework needs to be thoroughly implemented, and non-transparent shareholders still present in the ownership structure of some of the largest banks should be replaced with fit and proper investors.
Moldova has been trying to cope with a major banking crisis since about $1 billion went missing from three of its banks in November 2014. The banks - Banca de Economii, Banca Sociala and Unibank were liquidated.
Also, the EBRD said that the implementation of the IMF-backed reform programme should continue without delays.
"Implementation of structural reforms and macroeconomic policies agreed under the programme is crucial for maintaining investor confidence and for receiving financial support from international development partners," EBRD said.
In July, the IMF decided to lend Moldova a further $33.8 million (29 million euro) under the current three-year funding arrangement. So far, the latest allocation included, Moldova has received a total of $113.3 million in four tranches under the credit facility of $178.7 million approved in November 2016.
Earlier this month, the EBRD lifted its forecast for Moldova's economic growth in 2018 to 4.0%.
($=0.8899 euro)