Moldova

Interest rate on bank deposits to be cut in Moldova

May 22, 2009

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The Moldovan commercial banks are to decrease the interest rates on deposits of private people and legal entities depending on their structure, diversity and terms. The action is aimed at ensuring the real sector of the economy with financial means, data by the Moldovan Banks Association show.

According to the source, the decrease in interests on bank deposits is an opportunity to lessen the effects of the ongoing world economic crisis. At the same time, the commercial banks announce that they could examine opportunities in the real sector so as to take loans from the Moldovan National Bank.

In order to create new favourable conditions aimed at allowing the banks to diminish the interest rates on credits and deposits, two days ago, the National Bank decided to cut the base rate on its main monetary policy operations by one per cent, down to ten per cent annually. The decision is due to the monetary and macroeconomic indexes evolution, including the inflation level.

In 2008, the commercial banks increased the rates on the banking operations several times due to the world financial crisis. The average interest rate on bank deposits went down from 20.69 per cent to 18.72 per cent in April for national currency deposits and from 11.81 per cent to 9.66 per cent for foreign currency savings.