In response to media inquiries, we would like to note that the IMF held regular consultations with the authorities on issues related to restructuring of Banca de Economii (BEM) and also BEM group banks. At the same time, IMF has provided intensive technical assistance on these matters.

Various issues and risks were flagged in our reports at that time, publicly available at our website. For example, the July 2014 staff report clearly stated:

• the fragile status of BEM and two mid-sized banks believed to be affiliated to it;
• the presence of indications of active concealment of banks ultimate beneficial owners and controllers;
• the importance of respecting the independence of regulators from political interference and advised to urgently pass legislation to fully restore the NBM and NCFM’s regulatory powers;
• the need to strengthen the legal protection of board members and employees of these agencies should also be strengthened.

However, the government ultimately decided to act differently and did not follow the IMF’s recommendations. In the absence of an IMF program with Moldova at that time, the Fund was only able to provide advice and could not impose any conditionality.

Please note that IMF institutional view has been transparent, as always. You can find our position about the restructuring measures proposed to the government during 2014-2015 in our country reports No.14/190, No.14/346, No.16/19, available at our website.