INTERVIEW: “The weekend’s protests were the Russian peoples’, not the opposition’s” – Maxim Reznik
Western Balkans citizens legally resident in EU equal to 14% of region’s population
International Ice Hockey Federation (IIHF) has stripped Belarus of the right to hold the World Championship this year
Alexei Navalny arrested on arrival as he returns home
Russia's NorNickel adopts blockchain for supply chain management
Russia goes ahead with eSIM technology
Russia's retailer X5 Group posts 13% sales growth in 4Q20
National Bank of Ukraine retains a key policy rate at 6%, the outlook of the CPI deteriorates
Western Balkans and Ukraine urged to scrutinise coal subsidies
Oligarchs trying to derail Ukraine’s privatisation programme, warns the head of Ukraine’s State Property Fund
VISEGRAD BLOG: Central Europe's populists need a new strategy for Biden
LONG READ: The oligarch problem
OUTLOOK 2021 Lithuania
EBRD says loan to Estonia’s controversial Porto Franco project was never disbursed
Czech MPs pass protectionist food law in violation of EU rules
M&A in Central and Eastern Europe fell 16% in value in 2020, says CMS report
Hungarian vehicle makers hit by supply chain shortage
COVID-19 and Trump’s indifference helped human rights abusers in 2020
Polish industrial production continues boom in December
OUTLOOK 2021 Poland
OUTLOOK 2021 Slovakia
BRICKS & MORTAR: Rosier future beckons for CEE retailers after year of change and disruption
FDI inflows to CEE down 58% in 1H20 but rebound expected
Pandemic pushes public debt close to 80% of GDP in Albania and Montenegro
BALKAN BLOG: Superstition and resentment surround vaccination plans
Albania needs reforms for e-commerce to thrive, says World Bank
Bosnia's exports in 2020 amounted to BAM10.5bn, trade deficit to BAM6.3bn
Retailers and restaurant owners threaten protests in Bulgaria if reopening is delayed
Bulgaria's Biodit first company to IPO on new BEAM market
Bulgaria’s government considers gradual easing of COVID-related restrictions
Spring lockdown caused spike in online transactions in Croatia
ING: Growth in the Balkans: from zero to hero again?
Labour demand down 28% y/y in Croatia in 2020
Kosovo’s biggest opposition party risks being unable to run in general election
OUTLOOK 2021 Moldova
Storming parliaments: New Europe's greatest hits
World Bank revises projection for Moldova’s 2020 GDP decline to 7.2%
Montenegro’s special prosecution probes finance minister over €750mn Eurobond issue
North Macedonia plans to cut personal income tax in IT sector to zero in 2023
Romania government to pursue “ambitious” timetable for justice reforms
Private finance mobilised by development banks up 9% to $175bn in 2019
OUTLOOK 2021 Romania
BALKAN BLOG: US approach to switch from quick-fix dealmaking to experience and cooperation
Slovenia’s economic sentiment indicator up 2.2 pp m/m in January
Slovenia lost €10bn by neglecting wood industry for decades
OUTLOOK 2021 Slovenia
Slovenia’s opposition files no-confidence motion against Jansa cabinet
D’S Damat franchise deals ‘show Turkey’s hard-pressed mall operators becoming their own tenants’
Turkey’s benchmark rate held as concerns over faltering recovery come to fore
Turkish lira breaches HSBC’s stop-loss, Turkey ETF signalling outflows
CAUCASUS BLOG : What can Biden offer the Caucasus and Stans, all but forgotten about by Trump?
Armenia ‘to extend life of its 1970s Metsamor nuclear power plant after 2026’
OUTLOOK 2021 Armenia
OUTLOOK 2021 Azerbaijan
OUTLOOK 2021 Georgia
Iran’s President Khamenei menaces private citizen Trump
Iran’s technology minister indicted for failing to properly implement internet censorship
No US move to rejoin Iran nuclear deal imminent, say Biden national security nominees
TEHRAN BLOG: Will Biden bet on a quick return to the Iran nuclear deal?
Central Asia vaccination plans underwhelm, but governments look unruffled
Fears of authoritarianism as Kyrgyz populist wins landslide and backing for ‘Khanstitution’
Mongolia, island of democracy
OUTLOOK 2021 Mongolia
Mongolia's PM quits amid protests over treatment of mother with coronavirus and newborn baby
Mongolia's winter dzud set to be one of most extreme on record says Red Cross
OUTLOOK 2021 Tajikistan
OUTLOOK 2021 Turkmenistan
Turkmenistan: How the Grinch stole New Year
COMMENT: Uzbekistan is being transformed, but where are the democratic reforms?
Download the pdf version
More...
Moldova’s prosecutor general’s office announced that it conducted criminal investigations at the headquarters of the National Bank of Moldova (BNM) on March 5, in connection to “the bank fraud”, and subsequently arrested three current and former top management members, as well as taking preliminary steps to arrest a former central bank governor.
The "grand theft" or the $1bn bank fraud refers to the siphoning of some $1bn mainly from three Moldovan banks over several years, which surfaced in 2014-2015 when the central bank extended a MDL13bn ($1bn) emergency loan with government guarantees, later converted into public debt. The three banks were further liquidated.
On March 5 prosecutors arrested deputy governor of the central bank Aureliu Cincilei and former deputy governor Emma Tabirta, and informed former central bank governor Dorin Dragutanu about the accusations while taking the necessary steps for arresting him. As regards the fourth central bank official, the information is contradictory. Head prosecutor Alexandru Stoianoglo said in the morning that he approved the arrest of four central bank officials, namely the three plus deputy governor Ion Sturzu. But the official release later in the day indicated that the fourth official who was arrested is the head of a division, identified by media sources as head of the banking resolution division Ion Ropot.
Deputy governor Cincilei is the husband of the Democratic Party deputy and former health minister Ruxanda Glavan.
Dragutanu was central bank governor from 2009 to 2016. Anti-graft officers conducted searches at his home in December 2019.
Tabirta was deputy governor from 2008 to 2015, during which time both the $1bn fraud and the “Russian Laundromat” occurred. The latter involved a huge money laundering operation of $20bn that took place in Moldova. Tabirta has been investigated by prosecutors for involvement in the Russian Laundromat but she was not indicted.
“The operations took place in the context of the investigation of the bank fraud and resulted in the preventive detention of three persons, among them: a current and a former deputy governor, as well as a chief of staff from the BNM. They are suspected of participating in fraud and money laundering, both crimes committed in very large proportions," the press release from the prosecutor general's office reads.
The main suspect in the scandal is businessman Ilan Shor, identified as the “visible beneficiary” of the frauds and given a 90-month sentence in June 2017. However, while he waited for his appeal to be judged, Shor remained at large. He managed to be elected first as the mayor of Orhei, and later to the Moldovan parliament in the February 24 general election. He fled the country in summer 2019 after the change of government in Moldova.
Former Moldovan prime minister Vlad Filat was sentenced to nine years in prison for passive corruption and influence peddling in a case related to the frauds, but released early in December 2019 after serving just three years of his sentence.
The investigations related to the bank fraud will continue and other top public servants involved will be indicted as well, prosecutors announced on March 5.
With reference to the investigation actions carried out by the prosecutors, the BNM said in a press release that “it cooperated to the full extent of its ability with the investigation bodies during the last years, in the investigations instituted and files concerning the banking sector and provided all existing materials, documents, expertise, explanations etc. and will continue to fully cooperate with them.”
The BNM said that it puts its hope and trust in the conduct of an objective and professional investigation, which will identify those really responsible for the banking fraud.
At the same time, the BNM said that it relies on the fact that the investigations will not affect the central bank’s capacity to exercise its supervision duties.
Separately, the BNM expressed its deep concern over the public declarations and actions, which have increased recently, undermining the morale of the institution’s employees and the central bank's capacity to exercise its functions in a professional and independent manner.
Register here to continue reading this article and 5 more for free or purchase 12 months full website access including the bne Magazine for just $250/year.
Register to read the bne monthly magazine for free:
Already registered
Password could contain only a-z0-9\+*?[^]$(){}=!<>|:-_ characters and have 8-20 symbols length.
Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.
Forgotten password?
Email field can't be empty.
No user with this email address.
Access recovery request has expired, or you are using the wrong recovery token. Please, try again.
Access recover request has expired. Please, try again.
To continue viewing our content you need to complete the registration process.
Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.
If you have any questions please contact us at sales@intellinews.com
Sorry, but you have used all your free articles fro this month for bne IntelliNews. Subscribe to continue reading for only $119 per year.
Your subscription includes:
For the meantime we are also offering a free subscription to bne's digital weekly newspaper to subscribers to the online package.
Click here for more subscription options, including to the print version of our flagship monthly magazine:
More subscription options
Take a trial to our premium daily news service aimed at professional investors that covers the 30 countries of emerging Europe:
Get IntelliNews PRO
For any other enquiries about our products or corporate discounts please contact us at sales@intellinews.com
If you no longer wish to receive our emails, unsubscribe here.
Magazine annual electronic subscription
Magazine annual print subscription
Website & Archive annual subscription
Combined package: web access & magazine print annual subscription