Moldova government rejects state investment bank proposal

The Moldovan Cabinet has rejected a legislative initiative proposed by Socialist Party parliamentarians to establish a state-owned investment and modernization bank. The proposal sought to create a 100% state-owned institution with an authorized capital of 500 million lei, intended to provide more accessible financing for small and medium-sized enterprises through external capital partnerships.

Prime Minister Vasile Tofan criticized the initiative, describing it as one of the worst recent proposals received by the government. Tofan argued that 500 million lei would be insufficient for such an institution and cited the historical precedent of Banca de Economii, where the state lost $1 billion. The Ministry of Finance deemed the initiative premature for the country.

Additionally, the government rejected a second opposition proposal aimed at amending the law on the National Bank to reduce the number of non-member officials on its Supervisory Board.