NBM Reduces Rates on Overnight Loans and Long-Term Credits by 1%
OREANDA-NEWS. July 21, 2009. As the message of the National Bank notes, in addition, the NBM Administrative Board has decided to reduce the rates on overnight loans and long-term credits by 1% - from 11.5% to 10.5% and from 9% to 8%, respectively.
At the same time, in order to increase liquidity of the banking system of Moldova, the mandatory reserve norms in leis and foreign currency were reduced by 2% - from 16% to 14%. That makes possible to accumulate resources of approximately 233.5 million leis, US 11.5 million and 12.7 million euros for lending real sector of the economy.
As NBM states, the adopted decisions will help to reduce the interest rates on loans and deposits in conditions of the increase in the money offer. The possibility to decline the base rate and mandatory reserves norms is determined by the constant trend of reducing inflation registered since June 2008. According to the National Bureau of Statistics of Moldova, in June 2009, the deflation of 0.8% was registered.
The NBM emphasizes that measures on liberalization of the monetary policy undertaken by the National Bank before, has already made possible to reduce the interest rates on the attracted deposits and granted loans in the banking system. Thus, the average interest rate on deposit in MDL decreased from 20.69% in January up to 15.04% in June (-5.65%) and the average interest rate on loans granted in leis has decreased from 23.25% in January up to 18.94% in June (- 4.31%).
The National Bank of Moldova announced that it would closely monitor situation at the monetary and currency markets, as well as at the internal and external credit market, and will promptly take the necessary measures to fulfill its fundamental mission. The decision to lower the base rates on the main monetary policy transactions and rates on the overnight loans and long-term credits, adopted by NBM, will come into force after its publication in Monitorul Oficial.
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