OREANDA-NEWS. March 26, 2010. The amendments were proposed by the chairman of the parliamentary commission for economy, budget and finance Veaceslav Ionita and approved by the parliament in the first reading. The amendments provide the extension of rights of the banks to credit economic agents-the exporters of goods and services in foreign currency as well as specify the categories of residents having right to provide foreign currency loans to other residents. Now such right is entitled to certified banks and individuals-residents only.

According to amendments, the Ministry of Finance can also get the right to re-credit Moldavian companies in foreign currency from the external borrowings funds. It is planned that liberalization of lending exporters in foreign currency will facilitate access of economic agents to bank resources and simplify using existing currency liquidity. As Veaceslav Ionita noted, liberalization of foreign currency lending is possible taking into account higher rates on crediting in leis as compared to rates on the foreign currency loans.

The latter are more attractive for the exporters as it can reduce the cost of loans and increase competitiveness of the Moldavian products at the external markets. The amendments will facilitate access of economic agents to the bank resources and will stimulate reduction of the interest rates on loans in lei. He also notes that foreign currency lending will reduce currency risks of the exporters.

The government notes that the main risk from liberalization of foreign currency lending is possible increase in the level of dollarization of deposits, which will create difficulties for implementation of monetary policy. At the same time, in order to reduce the financial vulnerability, the NBM will be able to use its arsenal of monetary policy instruments.