According to the most recent available data, the volume of loans this February decreased by over 3 billion lei compared with last February, while of toxic loans increased by about 2 billion. Given that a large volume of liquidity, of about 7 billion lei, was accumulated in the banking sector, experts of the independent think tank “Expert-Grup” consider it is essential to channel these resources to the real sector in order to stimulate sustainable and non-inflationist economic growth, IPN reports.
To stimulate the financing of long-term investment, the experts recommend issuing long-term state securities, increasing private investors’ access to the state securities market, eliminating the policies that discriminate against the capital market, creating efficient infrastructure through financial intermediation on the non-banking market. Currently, the weighted average maturity of state securities in circulation is slightly over six months, while of new loans provided in 2016 is of 29 months. Both of the indicators are much below the regional average.
Economist Eugen Giletski said the success of these policies depends on the quality of cooperation between the state institutions and the capacity to ensure a stable and predictable macroeconomic framework. Any isolated attempt by the authorities to address one of the problems, such as the short maturity of state bonds or lack of private pension funds, without a set of clear multidirectional actions, will result in failure. To prevent eventual fraudulent or excessively risky practices, the experts recommend reinforcing the mechanisms for penalizing commercial banks.
“Expert-Grup” executive director Adrian Lupusor said the extension of access to long-term financing should become a priority for the Government, the National Commission for Financial Markets and the National Bank of Moldova, even if the latter pursues the goal of targeting inflation.
