RESOLUTION OF NATIONAL BANK OF THE REPUBLIC OF MOLDOVA

of May 19, 2022 No. 101

About approval of Regulations about responsible consumer lending by banks

Based on the item (c) of part (1) Art. 27, item (a) of Art. 44 of the Law on National Bank of Moldova No. 548/1995 (pereopublikovan: Monitorul Oficial al Republicii Moldova, 2015, No. 297-300, the Art. 544), with subsequent changes, Art. 38-1 and Art. 84 of the Law on activities of banks No. 202/2017 (Monitorul Oficial al Republicii Moldova, 2017, No. 434-439, the Art. 727), with subsequent changes, the Executive committee of National Bank of Moldova DECIDES:

1. Approve Regulations about responsible consumer lending by banks it (is applied).

2. This resolution becomes effective on July 1, 2022.

Approved by the Resolution of National Bank of the Republic of Moldova of June 3, 2022, No. 101

Regulations about responsible consumer lending by banks

Chapter I. Scope

1. These Regulations establish for banks of the Republic of Moldova, and also departments of banks of other states in the Republic of Moldova (further - "creditors") requirements of responsible crediting according to which creditworthness of consumers in case of the credits for consumers is estimated.

2. The creditor applies provisions of these regulations on individual basis.

3. Provisions of these regulations extend to agreements of the credits for consumers.

4. Provisions of subitems 6), 7), 8) of Item 9 and parts 3, of the 4 and 5 Chapter III of these regulations do not extend on:

1) the re-structured credits;

2) the credits in the form of crediting of the account (overdraft) based on which the credit shall be repaid within one month;

3) the credits which are completely guaranteed for all effective period, money (security deposit) in bank;

4) the credits accepted by the third parties in case of the death of the debtor or the Section;

5) the credits which are result of the decision passed by degree of jurisdiction or other body created according to the law.

5. The physical person which is granted the loan has the status of the consumer if the creditor did not receive the documents confirming its occupation with business or professional activity for which the credit is requested.

Chapter II. Determinations

6. The concepts and expressions used in these regulations have the values provided in the Law on activities of banks No. 202/2017 (further - "Law No. 202/2017"), the Law on credit agreements with consumers No. 202/2013 (further - "Law No. 202/2013") and in the regulations NBM published for application of the Law No. 202/2017.

7. In these regulations the following determinations are used:

1) the loan granted to the consumer - the loan granted on the basis of the credit agreement with the consumer;

2) consumer loan - the loan granted to the consumer, other what classified as the credit under real estate investments provided in the subitem 3);

3) the credit under real estate investments - the loan granted to the consumer for acquisition or reservation of ownership right on the parcel of land, construction and/or component of the building finished or which is subject to completion or on upgrade, consolidation or expansion of the building and/or component of the building or for rehabilitation of the earth and which is provided with the pledge established on one or several real estate units;

4) the re-structured credit - the loan granted to the consumer uncompensated/outstanding on which later within the supplementary agreement conditions of implementation of overdue payments were changed or was expanded the term of compensation/repayment of payment, established according to the agreement, according to concepts of renegotsiirovanny asset or the prolonged asset of Item 2 of the Regulations on classification of assets and contingent obligations approved by the resolution of Administrative board of National Bank of Moldova No. 231/2011, with subsequent changes and amendments;

5) the pledged real estate - the real estate pledged for ensuring obligation fulfillment according to the credit agreement provided to the consumer;

6) the price of the pledged real estate - the price of real estate specified in the purchase and sale agreement (in the presence of such agreement effective period no more than 6 months for date of the request for the credit) the corresponding object;

7) ratio between the credits and guarantees (further - SKG) - the ratio between total cost of the loan granted to the consumer, and real estate value pledged on this credit expressed as a percentage as it is specified regarding 3 Chapters III;

8) ratio of payments on the credits to the income (further - SPKD) - the ratio between debt servicing and average earnings of the consumer expressed as a percentage as it is specified regarding 4 Chapters III;

9) debt servicing - the amount of monthly maintenance expenses of total debt of the consumer as it is specified regarding 4 Chapters III;

10) market value - the market value estimated in the latest valuation report in ownership of bank, in value of Regulations about approach to credit risk for banks according to the standardized approach, the Executive committee of National Bank of Moldova No. 111/2018 approved by the resolution;

11) average earnings of the consumer - the average monthly net income of the consumer used for determination of its creditworthness in case of application for the credit as it is specified regarding 4 Chapters III;

12) the confirmed income - actually gained income which can be documented from the official sources which are at the disposal of public authorities, banks, non-bank financial organizations and/or bureau of credit histories including money transfers which can be documented, and also documentary confirmed income on the basis of the source documents of the strict reporting provided in the Order of the Government No. 294/1998 about accomplishment of the Presidential decree of the Republic of Moldova No. 406-II/1997.

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