RESOLUTION OF ADMINISTRATIVE BOARD OF NATIONAL BANK OF THE REPUBLIC OF MOLDOVA

of May 30, 2013 No. 110

About approval of Regulations about indicative rates of CHIBOR and CHIBID

Based on the item a) the Art. 5, the Art. 11, the item c) Art. 26 of the Law on National Bank of Moldova No. 548-XIII of July 21, 1995 (Monitorul Oficial al Republicii Moldova, 1995, Art. No. 56-57, 624), with subsequent changes and amendments, DECIDES: Administrative board of National Bank of Moldova

1. Approve Regulations about indicative rates of CHIBOR and CHIBID, according to appendix.

2. Declare invalid the Resolution of Administrative board of National Bank of Moldova No. 242 of August 11, 2005. "About approval of Regulations about interest rates of CHIBOR and CHIBID" (Monitorul Oficial al Republicii Moldova, 2005, Art. No. 110-112, 386), with subsequent changes and amendments.

3. This resolution becomes effective on July 1, 2013.

Appendix

to the Resolution of Administrative board of National Bank of the Republic of Moldova of May 30, 2013 No. 110

Regulations about indicative rates of CHIBOR and CHIBID

Chapter I
General provisions

1. These regulations establish procedure for forming and the publication of indicative rates of CHIBOR and CHIBID in the interbank money market of the Republic of Moldova, the right and obligation of the Parties involved in this process.    

2. Requirements of these regulations are applied to the banks licensed by National Bank of Moldova in the course of forming of indicative rates of CHIBOR and CHIBID.    

3. For the purpose of these regulations the following concepts are used:    

a) the fixing agent – organization which performs fixing according to the procedure, provided by these regulations and based on the agreement signed between National Bank and the relevant organization (Bloomberg Finance L.P);    

b) the participating bank – the bank chosen by National Bank of Moldova to participate in fixing in accordance with the terms, established by these regulations;    

c) CHIBOR (Chisinau Interbank Offered Rate) – the indicative rate calculated according to the procedure, established by these regulations on the basis of approximate/firm quotations of participating banks for placement of money in Moldovan lei in other banks;    

d) CHIBID (Chisinau Interbank Bid Rate) – the indicative rate calculated according to the procedure, established by these regulations on the basis of approximate/firm quotations of participating banks for attraction of money in Moldovan lei from other banks;    

e) the firm quotation – the quotation of interest rate in case of placement/attraction of money in the interbank money market with indication of amount of the transaction on the corresponding interest rate which is obligatory when carrying out the transaction for the bank performing the quotation if other bank decided to place/raise money;    

f) the approximate (informative) quotation – the quotation of interest rate in case of placement/attraction of money in the interbank money market which is not firm and is used by the bank performing the quotation for informing other bank;    

g) fixing – actions taken for forming of indicative rates of CHIBOR and CHIBID according to the conditions provided in these regulations;    

h) the interbank money market – the market by means of which banks provide each other money for short term (till 1 year inclusive). 

Chapter II
Conditions of selection and obligation of participating banks

4. The National Bank chooses licensed banks which correspond to cumulatively following conditions as participating banks:    

1) provided to National Bank, by his invitation, the contribution agreement according to appendix to these regulations which shall participate in forming of indicative rates of CHIBOR and CHIBID and observe requirements of regulations;    

 2) correspond, on extremely measure, one of the following criteria:    

a) have assets of at least 1.0 billion lei according to the data which are available for National Bank;    

 b) actively participate in the interbank money market as the creditor.    

In case of the choice of participating banks their financial condition by the end of the reporting period before establishment/review of the list is considered.     

5. The participating bank shall have the terminal of Bloomberg and:    

1) to announce approximate/firm quotations on the page in system of Bloomberg, throughout each working day till 10:45 local time for the following terms: overnight, 1 week, 2 weeks, 1 month, 3 months, 6 months, 12 months. Interest rates appear with two signs after comma, when calculating the convention Actually / 365 is used days (number of calendar days in month and 365 days in year). Value date (date when calculations for the transaction are perfromed) date of fixing - for term overnight and date spot (in two days after the transaction) - for other terms is;    

2) to announce quotations which correspond to the current tendencies of the interbank money market, freely determining difference between interest rate of the demand and supply for the corresponding term;    

3) in writing to inform National Bank on the reasons of not announcement of quotations according to requirements of the subitem 1) of this Item, no later than the third working day after not announcement.     

6. The participating bank has the right to change for day of the quotation, announced on the page in system of Bloomberg.    

7. The National Bank in accordance with the terms, stated in item 4 of these regulations, establishes, reviews (at least once a year) and publishes the list of participating banks on the official web page, informing the notice of the agent on fixing, newly elected banks and banks excluded from this list. 

Chapter III
Forming and publication of indicative rates

8. Indicative rates of CHIBOR and CHIBID are created automatically by the fixing agent each working day at 10:45 local time, calculating arithmetic-mean interest rates, after exception of the minimum and maximum rate by terms:    

a) overnight (O/N)    

b) 1 week (1W)    

c) 2 weeks (2W)    

d) 1 month (1M)    

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