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Ministry of Justice

Republic of Moldova

On December 31, 2019 No. 1515


of December 16, 2019 No. 60/4

About approval of Regulations about classification of assets by non-bank credit institutions

Based on Item and) parts (4) article 23 of the Law on non-bank credit institutions No. 1/2018 (Official monitor of the Republic of Moldova, 2018, No. 108-112, Art. 200) National commission on the DECIDES: financial market

Approve Regulations about classification of assets by non-bank credit institutions it (is applied).

Chairman of the National commission on the financial market

Valeriu Kitsan

Approved by the Resolution of the National commission on the financial market of the Republic of Moldova of December 16, 2019, No. 60/4

Regulations about classification of assets by non-bank credit institutions

I. General provisions

1. The regulations about classification of assets by non-bank credit institutions (further – Regulations) are applied by the non-bank credit institutions (further – NPO) registered in the Register of the authorized non-bank credit institutions in case of classification and calculation of size of loss reserves for the purpose of supervision, and also to establishment of the permitted deduction size for tax purposes on the assets subject to credit risk, based on the relevant agreements, namely:

1) non-bank credits;

2) debts on financial leasing;

3) the percent and other amounts added and reflected in financial accounting of NPO, which are subject to obtaining.

Concepts and essence of categories of assets to which these Regulations extend are determined according to the current legislation and national accounting standards.

2. NPOs shall classify and calculate loss reserves on assets for the purpose of supervision according to these Regulations.

For tax purposes NPOs which correspond to the established criteria in part (1) article 22 of the Law No. 1/2018, the deduction of loss reserves on the assets calculated according to international accounting standards is allowed.

3. In these Regulations the following concepts are used: overdue asset – asset which payment in connection with compensation/repayment was not received more than 30 days from payment date in time, established in the contract. If the asset becomes overdue, its balance also it is considered overdue;

renegotsiirovanny asset – uncompensated/outstanding asset on which later within the supplementary agreement conditions of implementation of overdue payments were changed;

the prolonged asset – asset which has terms of compensation/repayment of payment established according to the agreement are prolonged on the basis of the supplementary agreement. For qualification of asset, as prolonged, the agreement shall be signed to qualification of asset as overdue, according to the payment due date provided in the initial agreement. Determination of condition of asset as overdue, it is performed on the basis of the initial agreement and according to the concept "overdue asset";

payment – percent, financial leasing payments and other amounts or the initial amount of asset and percent, or part of asset and percent, or the part of asset paid in accordance with the terms and procedure for compensation/repayment of asset, provided in the agreement;

loss reserves on assets – the benefit created for the expenditure account for covering of the possible losses caused by not return of the non-bank credit, debts on financial leasing, the percent and other added amounts which are subject to obtaining.

II. Requirements about classification of assets. Creation of loss reserves on assets

4. The NPO shall create loss reserves on assets in the amount of, provided in Item 12.

5. The NPO classifies assets at least once a quarter the last day of the accounting period according to these Regulations.

6. New assets are classified from the date of their capture (emergence of assets) on accounting in balance of NPO.

7. Regulation of size of loss reserves on assets to necessary level is performed completely for the expenditure account or the income of NPO.

8. In case of classification of assets of NPO considers, but it is not limited to the following:

1) the financial position of the debtor and/or sources of return by the debtor (including the income of debtors – physical persons) estimated from the point of view of capability of accomplishment of obligations only at the time of ascertaining of new assets;

2) observance of contractual conditions;

3) the solvency of the debtor based on historical financial dynamics within NPO and the credit history concerning observance by the debtor of undertaken obligations requested from bureau of credit histories only at the time of ascertaining of new assets.

9. Assets join in one of the following categories of classification:

1) standard – asset on which all contractual commitments which has no overdue payments and which was not prolonged and/or renegotsiirovan are observed;

2) under supervision – asset on which the payment receipt is performed with delay from 31 to 90 days inclusive;

3) substandard – asset on which the payment receipt is performed with delay from 91 to 180 days inclusive;

4) doubtful – asset on which the payment receipt is performed with delay from 181 to 360 days inclusive;

5) hopeless – asset on which payments are delayed more than for 361 days.

10. Classification of assets according to Item 9 is performed on the debtor taking into account general remaining balance of assets under agreements. If the debtor owns several assets issued to the same NPO, then all its assets are classified to the most tough category registered by the debtor.

11. Prolongation and/or renegotsiirovaniye of asset do not lead to its classification in the best category, than category of this asset in day of prolongation or renegotsiirovaniye.

12. The NPO creates loss reserves on assets, applying the following percent from the amount of assets on each category of classification according to Item 9:

1) standard 2%

2) under the supervision of 5%

3) substandard 30%

4) doubtful 60%

5) hopeless 100%.

13. Detection of asset as overdue asset does not lead to cancellation of the debts connected with asset of the debtor or other obliged partner and does not influence the right of NPO to require implementation of the corresponding payments or accomplishment of other requirements connected with asset.

III. Features of classification of some assets

14. The NPO classifies asset not above category "standard" if:

1) to the decision on issue of new assets of NPO solvency of the debtor through prism of provisions of subitems 1) and 3) did not estimate Item 8;


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