Moldova Prepares National Bank for EU Financial Integration

The state is preparing the NBM for integration into European financial structures

Parliament will examine at first reading a draft law setting out measures to strengthen the independence of the National Bank of Moldova (BNM). The Committee on Economy, Budget and Finance has approved the report on the draft.

Elena Grumeza

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The document transposes European rules on central bank independence into national law. According to the explanatory memorandum, the EU acquis in the field of economic and monetary policy sets out clear requirements regarding central bank independence, prohibits direct financing of the public sector by the central bank and restricts the public sector’s privileged access to financial institutions.

“The European Commission has set out its position on monetary policy. The Republic of Moldova is not yet fully compliant with the acquis communautaire, and we intend to introduce further measures to strengthen the regulatory framework of the Central Bank from an institutional, operational and financial perspective,” said Elena Grumeza, State Secretary at the Ministry of Finance, at the meeting of the Committee on Economy, Budget and Finance.

The draft bill paves the way for the integration of the National Bank of Moldova into European financial structures: the European System of Central Banks and the European System of Financial Supervision. This integration is set to take place upon the Republic of Moldova’s accession to the European Union.

“In practical terms, what does this mean? It means contributions to the ECB’s capital, the governor’s participation in the ECB’s General Council, as well as the NBM’s participation in the European Banking Authority and the European Systemic Risk Board,” said Grumeza.

The draft ensures ‘full independence’

The draft stipulates that the National Bank and the members of its governing bodies shall exercise their powers independently and may not seek or accept instructions from Parliament, the Government or other public authorities of the Republic of Moldova. At the same time, the NBM will continue to submit reports on its activities to Parliament.

The draft law also regulates the legal status of the National Bank’s assets. The classification of immovable property into public or private categories, as well as the allocation of movable property, will be carried out in accordance with the NBM’s internal regulations. Furthermore, the provisions concerning the administration and privatisation of public property will not apply to the National Bank’s assets.

Another provision concerns the rules on incompatibilities applicable to members of the NBM’s governing bodies. They will not be permitted to engage in any remunerated activities, with the exception of teaching and scientific work.

Following adoption, the new legislative provisions will enter into force one month after their publication in the Official Gazette, with the exception of certain articles which will take effect from the date of the Republic of Moldova’s accession to the European Union.

This story was translated with the assistance of artificial intelligence.The translation was also reviewed by the Logos Press editorial team.

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