The National Bank of Moldova (BNM) regrets that some persons attempt to shift the failures of the Board of Banca de Economii (BEM) and its shareholders onto other institutions. The central bank’s press service informs in a communiqué that it transmitted a report to the BEM Board in June 2011, where it showed that the bank hid losses from loans of 172 million lei, Info-Prim Neo reports. The BNM says it warned that other loans to the value of 634 million lei can generate additional losses. On November 11, 2011, the BNM issued another detailed report to the bank’s Board, indicating that the BEM hid losses from loans of 289 million lei. It also said that the Board reports false data about the bank’s financial situation, does not reveal the risk profile and the real quality of the bank’s assets. According to the central bank, in both of the cases the BEM Council was functional and was obliged to reactor promptly so as to improve the situation. In an interview for the paper “Adevarul” Moldova, the president of the BEM Board Victor Bodiu said that he inherited an unpleasant situation that was hidden until then, while the former administration of the bank didn’t respect the financial prudence norms when providing loans. According to Bodiu, the policy in parts was fraudulent and led to the significant deterioration of the BEM’s portfolio. He voiced hope that the situation will be remedied.