{"id":448374,"date":"2020-06-09T19:13:06","date_gmt":"2020-06-09T19:13:06","guid":{"rendered":"http:\/\/www.moldova.org\/en\/?p=448374"},"modified":"2020-06-09T19:19:09","modified_gmt":"2020-06-09T19:19:09","slug":"the-imf-official-letter-the-hard-won-strengthening-of-the-nbm-independence-is-at-risk-of-being-reversed","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/the-imf-official-letter-the-hard-won-strengthening-of-the-nbm-independence-is-at-risk-of-being-reversed\/","title":{"rendered":"The IMF official letter: &#8220;The hard-won strengthening of the NBM independence is at risk of being reversed.&#8221;"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>On June 1, an official letter signed by the representatives of the <strong>International Monetary Fund (IMF)<\/strong> has been sent to the Moldovan officials &#8211;\u00a0 Speaker of the Parliament Zinaida Greceanii, Prime Minister Ion Chicu and President Igor Dodon.\u00a0In the letter, the IMF expressed its concern about the new legislative initiative announced by the Government of the Republic of Moldova, through which the <strong>National Bank of Moldova (NBM)<\/strong> <span style=\"color: #993300\">coverage of legal representation costs for NBM staff could be eliminated<\/span>.<\/p>\n<p>The representatives of the IMF expressed their serious concern <span style=\"color: #000080\"><em>&#8220;that the hard-won strengthening of the NBM independence &#8211; the corner stone of banking system rehabilitation and a key pillar of Moldova&#8217;s recently concluded IMF-supported program &#8211; is at risk of being reversed,&#8221;<\/em><\/span> is mentioned in the <a href=\"https:\/\/tv8.md\/2020\/06\/09\/doc-fmi-ingrijorat-de-un-proiect-de-lege-anuntat-de-chicu\/\">letter<\/a> made public by TV8.<\/p>\n<blockquote><p>&#8220;According adequate legal protection to the NBM officials is a key element under international best practices concerning the autonomy and accountability of central banks. [&#8230;] In order for this protection to be adequate, good practices specifically require that such current and former officials are protected against the cost of defending their actions and\/or omissions made in good faith.&#8221;<\/p><\/blockquote>\n<p>Therefore, the IMF officials strongly recommended ensuring the compliance of the NBM law with international good practices, in order to <span style=\"color: #000080\"><em>&#8220;preserve the NBM&#8217;s independence and for effective fulfilment of its monetary policy and financial stability mandates.&#8221;<\/em><\/span><\/p>\n<p>On June 8,\u00a0Prime Minister <strong>Ion Chicu<\/strong> announced that an amendment will be proposed to the NBM legislation in order to eliminate the &#8216;privileges&#8217; enjoyed by the NBM officials. <em>&#8220;In addition to salaries of hundreds of thousands of lei per month, these officials benefit from unimaginable facilities, including being protected at the expense of the state budget when they break the law. [&#8230;] As following, we will come up with a bill to amend the legislation in order to eliminate the absolutely unfounded privileges enjoyed by the officials of this institution. The NBM leadership must understand that the people will no longer pay lawyers for those who were involved in the billion dollar theft,&#8221;<\/em> <a href=\"https:\/\/www.facebook.com\/ionchicu.md\/\">claimed<\/a>\u00a0Ion Chicu.<\/p>\n<p>In his message, Prime Minister also disclosed that\u00a0the NBM leadership decided to file a complaint to the foreign diplomatic corps and the IMF, <em>&#8220;that the state is threatening the independence of the central bank.&#8221; <\/em>Therefore<em>,\u00a0<\/em>the Moldovan official was already aware of possible consequences that could follow. However, the Government representatives declared they know nothing regarding the official letter signed by the IMF.<\/p>\n<p>As an answer to PM&#8217;s declarations, the NBM representatives claimed that the practice of bearing costs related to the lawsuits filed against its employees is recognized and established internationally. <span style=\"color: #000080\"><em>&#8220;The National Bank has a distinct status. The special statute, but also the need for protection mechanisms to ensure the full exercise of the banking supervision and resolution authority, including bearing the costs of lawsuits against its employees, are recognized and enshrined internationally in the key documents,&#8221;<\/em><\/span> <a href=\"https:\/\/www.zdg.md\/stiri\/stiri-sociale\/comentariul-bnm-dupa-ce-chicu-a-spus-ca-poporul-nu-va-mai-plati-avocati-pentru-cei-care-au-fost-implicati-in-furtul-miliardului\/\">reacted<\/a> the NBM.<\/p>\n<p>Photo: Facebook| NBM<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>On June 1, an official letter signed by the representatives of the International Monetary Fund (IMF) has been sent to the Moldovan officials &#8211;\u00a0 Speaker of the Parliament Zinaida Greceanii, Prime Minister Ion Chicu and President Igor Dodon.\u00a0In the letter, the IMF expressed its concern about the new legislative initiative announced by the Government of [&hellip;]<\/p>\n","protected":false},"author":31,"featured_media":448375,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,4],"tags":[390,35,580,574,755,27,587,523,117],"class_list":["post-448374","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics","category-society","tag-imf","tag-important","tag-independence","tag-ion-chicu","tag-letter","tag-moldova","tag-nbm","tag-official","tag-prime-minister"],"content_social_share":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>On June 1, an official letter signed by the representatives of the <strong>International Monetary Fund (IMF)<\/strong> has been sent to the Moldovan officials &#8211;\u00a0 Speaker of the Parliament Zinaida Greceanii, Prime Minister Ion Chicu and President Igor Dodon.\u00a0In the letter, the IMF expressed its concern about the new legislative initiative announced by the Government of the Republic of Moldova, through which the <strong>National Bank of Moldova (NBM)<\/strong> <span style=\"color: #993300\">coverage of legal representation costs for NBM staff could be eliminated<\/span>.<\/p>\n<p>The representatives of the IMF expressed their serious concern <span style=\"color: #000080\"><em>&#8220;that the hard-won strengthening of the NBM independence &#8211; the corner stone of banking system rehabilitation and a key pillar of Moldova&#8217;s recently concluded IMF-supported program &#8211; is at risk of being reversed,&#8221;<\/em><\/span> is mentioned in the <a href=\"https:\/\/tv8.md\/2020\/06\/09\/doc-fmi-ingrijorat-de-un-proiect-de-lege-anuntat-de-chicu\/\">letter<\/a> made public by TV8.<\/p>\n<blockquote><p>&#8220;According adequate legal protection to the NBM officials is a key element under international best practices concerning the autonomy and accountability of central banks. [&#8230;] In order for this protection to be adequate, good practices specifically require that such current and former officials are protected against the cost of defending their actions and\/or omissions made in good faith.&#8221;<\/p><\/blockquote>\n<p>Therefore, the IMF officials strongly recommended ensuring the compliance of the NBM law with international good practices, in order to <span style=\"color: #000080\"><em>&#8220;preserve the NBM&#8217;s independence and for effective fulfilment of its monetary policy and financial stability mandates.&#8221;<\/em><\/span><\/p>\n<p>On June 8,\u00a0Prime Minister <strong>Ion Chicu<\/strong> announced that an amendment will be proposed to the NBM legislation in order to eliminate the &#8216;privileges&#8217; enjoyed by the NBM officials. <em>&#8220;In addition to salaries of hundreds of thousands of lei per month, these officials benefit from unimaginable facilities, including being protected at the expense of the state budget when they break the law. [&#8230;] As following, we will come up with a bill to amend the legislation in order to eliminate the absolutely unfounded privileges enjoyed by the officials of this institution. The NBM leadership must understand that the people will no longer pay lawyers for those who were involved in the billion dollar theft,&#8221;<\/em> <a href=\"https:\/\/www.facebook.com\/ionchicu.md\/\">claimed<\/a>\u00a0Ion Chicu.<\/p>\n<p>In his message, Prime Minister also disclosed that\u00a0the NBM leadership decided to file a complaint to the foreign diplomatic corps and the IMF, <em>&#8220;that the state is threatening the independence of the central bank.&#8221; <\/em>Therefore<em>,\u00a0<\/em>the Moldovan official was already aware of possible consequences that could follow. However, the Government representatives declared they know nothing regarding the official letter signed by the IMF.<\/p>\n<p>As an answer to PM&#8217;s declarations, the NBM representatives claimed that the practice of bearing costs related to the lawsuits filed against its employees is recognized and established internationally. <span style=\"color: #000080\"><em>&#8220;The National Bank has a distinct status. The special statute, but also the need for protection mechanisms to ensure the full exercise of the banking supervision and resolution authority, including bearing the costs of lawsuits against its employees, are recognized and enshrined internationally in the key documents,&#8221;<\/em><\/span> <a href=\"https:\/\/www.zdg.md\/stiri\/stiri-sociale\/comentariul-bnm-dupa-ce-chicu-a-spus-ca-poporul-nu-va-mai-plati-avocati-pentru-cei-care-au-fost-implicati-in-furtul-miliardului\/\">reacted<\/a> the NBM.<\/p>\n<p>Photo: Facebook| NBM<\/p>\n<div class='heateorSssClear'><\/div><div  class='heateor_sss_sharing_container heateor_sss_horizontal_sharing' data-heateor-sss-href='https:\/\/www.moldova.org\/en\/the-imf-official-letter-the-hard-won-strengthening-of-the-nbm-independence-is-at-risk-of-being-reversed\/' data-heateor-sss-no-counts=\"1\"><div class='heateor_sss_sharing_title' style=\"font-weight:bold\" ><\/div><div class=\"heateor_sss_sharing_ul\"><a aria-label=\"Facebook\" 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name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Maria Dulgher\" \/>\n\t<meta name=\"twitter:label2\" content=\"Estimated reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.moldova.org\\\/en\\\/the-imf-official-letter-the-hard-won-strengthening-of-the-nbm-independence-is-at-risk-of-being-reversed\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.moldova.org\\\/en\\\/the-imf-official-letter-the-hard-won-strengthening-of-the-nbm-independence-is-at-risk-of-being-reversed\\\/\"},\"author\":{\"name\":\"Maria Dulgher\",\"@id\":\"https:\\\/\\\/www.moldova.org\\\/en\\\/#\\\/schema\\\/person\\\/4cd49a1f49c7d48a105c8a4cb7e3a2bf\"},\"headline\":\"The IMF official letter: &#8220;The hard-won strengthening of the NBM independence is at risk of being 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