Tiraspol, 14 November. /Novosti Pridnestrovya/. In a televised interview, the chairman of the Pridnestrovian Republican Bank (PRB), Vladislav Tidva, commented on the restructuring of a number of banks. He recalled that in early 2017 Pridnestrovie had faced a systemic banking crisis with over 40% of the total credit portfolio being problematic loans and 26.6% problematic bank assets.
"These are catastrophic figures, and in such circumstances, the central bank required taking urgent measures to stabilise the situation. We came to a conclusion that it was necessary to nationalise banks with negative net assets — Ipotekabank and Promstroybank. A special agency was created to rehabilitates the banking sector. It purchased problematic loans from these banks and added them to a ‘healthier’ Eximbank," explained Tidva,
According to him, that situation was largely related to the abuse and inefficient management of the banks and their shareholders.
"In particular, a large loan was granted to Moldova Steel Works (MMZ), although the bankers knew there was a high risk that it wouldn't be repaid. It was a sum of 264 million roubles. It turned out, at the same time, that the enterprise had actually lost $48 million. Is it a mismanagement or abuse? This issue must be dealt with," said Tidava, adding that MMZ's debts had been restructured for 10 years as the enterprise was not able to repay it.
Tidva noted that at the moment the banking situation was stabilised, and the above-mentioned banks had been readjusted, after which they merged with Eximbank under the law.
"As a result, we've had a large bank with a currency balance of $100 million. Eximbank has become the successor of the absorbed Ipotekabank and Promstroybank. Their clients can contact Eximbank branches for advice," concluded Tidva.
