OREANDA-NEWS. May 18, 2010. The Final Statement of the IMF mission stated that the limited financial integration has safeguarded Moldova from the shocks at international financial markets. The banks remain liquid and well capitalized, and the influence of problematic foreign assets and institutions is minimal. Moreover, the low degree of interdependence limits the systemic risk in case of the bankruptcy of individual banks.

At the same time, the experts are concerned with high level of bad loans and a large amount of lending in the foreign currency. Bad loans have exceeded 17%, although there are encouraging signs that this figure may have already peaked. The foreign currency loans make more than 40% of the total. The IMF experts recommend necessity of continuing supervision of the banks’ activity and close the interaction with them.

The purpose of these actions is to provide the adequate level of capital reserves and liquidity of the banks, sufficient to successfully overcome risks connected with the credit quality. In addition, the strengthening of the banking problems may contribute to the solution of the problem of unfavorable loans that will improve the balance sheets of the banks and promote the resumption of lending.

IMF experts say that it would be useful to develop the emergencies plan, including a clear division of responsibilities and develop a system of decision-making in case of arising problems in the financial sector.