Moldova’s central bank (BNM) and the Black Sea Trade Development Bank (BSTDB) signed a memorandum of understanding on July 3 in Chisinau that will help Moldova gain banking expertise from BSTDB member countries. The development bank’s members include Turkey, Russia, Romania and Greece. 

BNM has reached an advanced stage in settling the situation of the three Moldovan banks currently under special supervision — which are also its three largest banks — after having liquidated three other banks involved in the $1bn frauds that culminated in 2014-2015. Specifically, it needs strategic investors for Moldova Agroindbank (MAIB), Moldindconbank (MICB) and Victoriabank, which together account for 60% of the banking system’s assets. 

The memorandum was signed by BNM governor Sergiu Cioclea and BSTDB president Ihsan Ugur Delikanli, at the end of a conference in Chisinau organised by the BSTDB in partnership with the Moldovan government, the chamber of trade and industry and the European Business Association. 

“Investors can make profitable business in Moldova, particularly at a time when the country’s banking system is catching up with the best banking systems in the region,” Cioclea stressed in his remarks prior to signing the memorandum.

He once again invited investors to consider the stakes on sale in the country’s three largest banks. 

Whereas stakes in MAIB and MICB have been for sale since last year, the sale of the 39.2% stake in Victoriabank is a more recent decision by the monetary authority. 

Cioclea confirmed that the owner of a 39.2% share in Victoriabank was fined for not observing the shareholder transparency requirements (this information had already been circulated in the media) and he also mentioned Victoriabank among the banks where significant stakes are for sale. He implied that the shareholder of the 39.2% stake (Cyprus-based Insidown LTD) is seeking a buyer.

At the same time, Cioclea stressed that the three banks under special supervision are performing well financially. Special supervision is supposed to be lifted after the completion of remedial plans around the end of 2017. Exhaustive audits of the three largest banks are close to completion and similar screening at Moldova’s other banks should be ready by the end of the year.

Besides providing direct expertise and financing to Moldova, the BSTDB intermediates actions of other international financial investors such as the Nordic Investment Bank (NIB).

As part of its cooperation with the BSTDB, the NIB indirectly supports projects in Black Sea countries including Moldova, the NIB’s general counsel Heikki Cantell explained to bne IntelliNews. The NIB has no framework agreement and is not directly involved in projects in Moldova mainly because of the small size of the projects in the country, he said. But even indirectly through the BSTDB, the NIB's participation assures that projects are carried out with the least environmental impact — one of the priorities followed by the NIB.