The Financial System Challenges of the Republic of Moldova in the  Pandemic Covid 19 Context

Lopotenco, Viorica

doi:10.31435/rsglobal_ijite/30092020/7170

Cited by 2 publications

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“…It is noted that in addition to the traditional recommendations for fiscal consolidation and structural reforms, IFIs in these countries are focusing on reforms in the most corrupt sectors -banking and energy. The article by Lopotenco (2020) focuses on the vulnerability of the economy of Moldova and especially its financial system to the economic crisis caused by the COVID-19 pandemic. It is revealed that this vulnerability is mainly related to the specifics of the country's economy (small, open economy, with a constant current account deficit and a strong dependence on international financial flows).…”

Section: Literature Reviewmentioning

confidence: 99%

Analysis of Financial Assistance From International Financial Institutions of Moldova

Stupachev

2022

Economy and Sociology

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The article considers the financial assistance of international financial institutions (the International Monetary Fund and the World Bank) to the Republic of Moldova in their partnership process. The relevance of the study is determined by the objective need to use this financial assistance to solve urgent financial and economic problems and implement an effective economic policy of Moldova. The purpose of the article is to analyze the financial assistance of International Financial Institutions to Moldova, to assess the current state and prospects for developing their financial relations. The information base of the research consists of theoretical and methodological scientific studies of foreign and Moldovan economists devoted to the subject under consideration; information materials of official websites of financial organizations. It is shown that for the entire period of financial support of Moldova by the International Monetary Fund, almost all special credit mechanisms have been implemented. Since 1993, the World Bank has been implementing and financing 118 different projects (90 completed, 18 active and 7 under development). Agriculture accounts for the largest number of projects financed by the bank. It is revealed that the country's debt and overdue obligations to International Financial Institutions have an upward trend, which is due to the crises and financial instability of 2008 and 2019. The continuation of such a trend in the future may lead to certain financial and economic problems if the financial assistance received does not lead to significant development of the Moldovan economy.

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Section: Literature Reviewmentioning

confidence: 99%

Analysis of Financial Assistance From International Financial Institutions of Moldova

Stupachev

2022

Economy and Sociology

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“…Similarly, Adrian and Natalucci state that the financial systems have already been significantly affected by COVID-19, with prices of risk assets falling, liquidity decreasing, and borrowing costs rising [56]. Whereas the COVID-19 pandemic has clearly affected the overall world economic condition as well as various sectors of the economy, the scientific research of this effect has recently emerged, though the empirical analysis is still quite limited [52,53,[56][57][58][59][60][61][62].…”

Section: Literature Reviewmentioning

confidence: 99%

“…Tokic (2020) argued that eventually, the COVID-19 pandemic causes such financial consequences as an increase in inflation and interest rate [59]. Viorica (2020) also identified potential disruptions in international financing together with declining export demand, which may particularly affect low and middle-income countries [60]. Barua and Barua (2020) agree that the development of the country together with the architecture of the banking sector may determine the severity of the impact [63].…”

Section: Literature Reviewmentioning

confidence: 99%

Sustainable Economic Growth Support through Credit Transmission Channel and Financial Stability: In the Context of the COVID-19 Pandemic

Teresienė

Keliuotytė-Staniulėnienė

Kanapickienė

2021

Sustainability

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All countries worldwide faced the COVID-19 pandemic and had to take actions to lower the economic shock. Financial authorities play an especially significant role in economics and can help to manage the negative consequences. This article focuses on the European central bank monetary policy and actions taken for COVID-19 risk management. This research aims to identify the significant factors influencing the long-term loans for enterprises’ credit conditions in a forward-looking approach and determine the impact of the spread of COVID-19 pandemic on banking sector credit risk, financial distress, lending growth, and financial soundness indicators. This research is focused on the credit transmission channel and the role of the Pandemic Emergency Purchase Program in different countries of the euro area. To reach the main goal, panel data regression models are used. Our findings showed that the banks’ risk tolerance is a principal factor influencing long-term loan credit standards. We also identified that the spread of the COVID-19 pandemic has a statistically significant negative effect on banking sector credit risk, financial distress, banking sector profitability, and solvency. Furthermore, after analyzing the euro area banking sector, we found that liquidity increased. Hence, it means that banks have enough funds to support sustainable economic growth, but on the other side, commercial banks do not want to take credit risk because of their risk tolerance. Our research findings show the mixed effect of the COVID-19 pandemic on financial stability: while the overall financial distress decreased and banking sector liquidity increased, the profitability and solvency decreased some extent.

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The Financial System Challenges of the Republic of Moldova in the Pandemic Covid 19 Context

Cited by 2 publications

References 0 publications

Analysis of Financial Assistance From International Financial Institutions of Moldova

Analysis of Financial Assistance From International Financial Institutions of Moldova

Sustainable Economic Growth Support through Credit Transmission Channel and Financial Stability: In the Context of the COVID-19 Pandemic

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