KPMG: Tax&Legal Newsflash

KPMG: Tax&Legal Newsflash

• 11.02.2009

New Law on Mortgages Changes to Compulsory Bank Reserve Requirements National Bank of Moldova lowers some interest rates For more details in English, Romanian and Russian please check our KPMG Publications page.et New law on mortgages Under the new legislation, the land or property which is to be mortgaged must be valued by an independent assessor. The market value and replacement value of the mortgaged property must be specified in the evaluation report. The mortgage contract must be certified by a notary and registered in the real estate registry. A mortgaged property must be insured for its replacement value against all risks of accidental loss or damage. The law took effect on 2 September 2008. Changes to compulsory bank reserve requirements For the period between 6 October and 20 October 2008 the compulsory bank reserve requirement for funds deposited in Moldovan lei, non-convertible currencies and freely convertible currencies has been set at 20,5% of the effective base. National Bank lowers some interest rates The new rates set by the National Bank of Moldova are as follows: � Basic rate for short-term operations, 17.0 per cent per year; � Overnight loans - 18.0 per cent per year; � Overnight deposits placed with the National Bank of Moldova by commercial banks - 2.0 per cent per year. � Basic rate for long-term loans (over 5 years) - 10.5 per cent per year. This information is based on the legal provisions of Law Nr. 142-XVI (26 June 2008) on mortgages, National Bank of Moldova Decree Nr. 187 on amending the compulsory bank reserve requirements (25 September 2008) and National Bank of Moldova Decree Nr. 188 on interest rates (25 September 2008).

KPMG Moldova

KPMG is a global network of professional firms providing Audit, Tax and Advisory services. KPMG operates in more than 155 countries and has over 174,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. In Romania, KPMG was founded in 1994 and now operates from six offices, in Bucharest, Timisoara, Cluj Napoca, Iasi, Constanta and in Chisinau (the Republic of Moldova) since 1997. The practice has more than 800 staff, including 18 Partners, both Romanian and expatriates from the Canada, France, Israel, Sweden etc.