European Bank

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Mr,NieolneTimui1i President ol"the Republic of Moldovrr
Mr, r/rsnmr trrprr President, Parliament or Moldova Mr.

visa rant

Acting Pr-ima MannerMr. Darin Dragutanu

Governor, National Bank ofMoldnva (NRM)
l8 April 20l3

Your Exeelleneies,
l`he Commercial Bank “Moldova-Agroindbz\nk" (MAIB) is our largest partner bunk in the Republic ol' Moldova. Protecting and sustaining tire commercial orientation and good corporate governance nf`MAlB is ofparanrount importance to the heulth ofthe frrraneial sector' and to Moldova's economic pertbrmance,
We do rrpprcerare the on-going ertrrns being made hy the Mnrdrrvarr arrrrruriues to ensure that only sound and r'eputable investors hold shares iu Moldovan banks, The recent developnrents in this regard, namely enactn-rerrt of tlre amendments to the Law on rrrnneiar trrsrinrrrrms and other related raw, appear to equip the Nam with the means to protect the integrity ofthe banking system. It is also our understanding thru. unlike in 201 1, the frnaneial market regulators have enhanced powers to suspend and

investigate doubtful share transfers and impose sanctions for illicit translerst
However, we have become aware that transactions related to the shares of MALE are taking place that appear' ofa suspicious nature and similar to the eorporate raids which took place on MAIB in the summer of20l 1. We would kindly ask you to urgently look into the events and to ensure that all appropriate measures available underMoldovan law are taken to suspend lltese transactions and cancel their effect on the bank ifthey ure shown to be illicit. lt is impurtttnt to the integrity ofthe banking sector that airy movement of shares is made in a fully transparent and legal manner, with Hill tlisclusrrre ofthe final beneficial owner(s),

Given the potential risk to the banking system, which is ofnu tloubt oquirl concern to other institutions like the IMF, IFC andthe European Conrrnission, we will continue to coordinate our activities regarding this ease with them.

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am pleased to inform you that our Board of Directors approved yesterday mi extension to our Financial Sector Framework for Moldova ofup to EUR B0 million. ln addition, together with other investors we are considering a new investment i|\ MATB, subject to all internal approvals, However, our continued involvement requires the Moldovan authorities to take decisive action to avoid that MAIB becomes controlled by non-transpanettt shareholders nt’ parties not lit and proper' under the law, The attraeiiveuess ofMoldovn to investors does require you to make full use ofthe errhauced legal hamework to ensure the full transparency and continued cunurrercinl orientation ofthe financial seetur.
I

We would appreciate timely information on the steps taken by thc authorities in respect ofthe above issue and results aclricved in that regard.

W
M

/éefntfe/an

“Awe

cc:

Mr. Werner Hoyer, President, European Investment Bank MJ. Victot Captati, Vice-President ofthe National Commission oflfinancial

Market Mr. Stefan mite, crrmrrrissinner-, DG Enlar-genrenr, European Commission Mr. Reza Moglmdam, Director ofthe European Department, IMF Mr. Jin-Yong Cai, Executive Vice President and CEO, LFC

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