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RESOLUTION OF NATIONAL BANK OF THE REPUBLIC OF MOLDOVA

of September 25, 2014 No. 188

About approval of Regulations about transactions in the money market of National Bank of Moldova

(as amended on 07-04-2022)

Based on Items and) and e) parts (1) Articles 5, parts (1) Articles 11, Articles 15, parts (1), (2), (4) and (5) Articles 18, Items and) and c) Articles 26, Article 42 and article 45 of the Law on National Bank of Moldova No. 548-XIII of July 21, 1995. (The official monitor of the Republic of Moldova, 1995, Art. No. 56-57, 624), with subsequent changes and amendments, DECIDES: Administrative board of National Bank of Moldova

1. Approve Regulations about transactions in the money market of National Bank of Moldova, according to appendix No. 1.

2. Consider invalid some regulations of National Bank of Moldova, according to appendix No. 2.

3. This resolution becomes effective on October 31, 2014.

Chairman of Administrative board of National Bank of Moldova

Doreen Dregutsana

Appendix No. 1

to the Resolution of Administrative board of National Bank of Moldova of September 25, 2014 No. 188

Regulations about transactions in the money market of National Bank of Moldova

Chapter I. Basic provisions

1. These regulations establish the general principles, tools, conditions, criteria and procedures of carrying out transactions in the money market of National Bank of Moldova, obligation and responsibility of participants of these transactions, acceptable assets for implementation of transactions and for guaranteeing transactions on provision of liquidity, procedure for calculation of transactions and the sanction which will be applied in case of default on obligations by participants.

2. Transactions in the money market of National Bank are performed at the initiative of National Bank with participation of competent participants for liquidity management in the market, interest rate adjustments and for specifying of the direction of monetary management. The National Bank of Moldova establishes the tool which should be used terms and conditions of implementation of these transactions.

3. In sense of these regulations the following concepts are determined:

a) provision of secured loans – transaction within which the National Bank for the purpose of provision of liquidity grants the loans to competent participants, keeping their property right over the acceptable assets provided as pledge;

b) acceptable assets for implementation of transactions and for guaranteeing – government securities (further – GTsB), the certificates of National Bank of Moldova and other acceptable financial assets established by National Bank;

c) equivalent assets (GTsB) – GTsB equivalent to the sold/acquired GTsB within the transaction of repo / the return repo. GTsB are considered equivalent if they were issued by the same issuer during the same issue, are the same type, nominal value, the description and in the same quantity;

d) marzhin call (the marginal requirement) - the procedure applied in transactions of repo / the return repo and in transactions on loan granting by means of which provision of additional assets or money is requested from partners if the asset cost, provided as providing, revaluated regularly, falls below certain level. To reduce the frequency of marginal requirements the operation threshold marzhin call is applied;

e) attraction of term deposits – transaction with the stipulated repayment period within which the National Bank for the purpose of absorption of liquidity attracts deposits from competent participants;

e-1) the basis for execution of financial provision - the event of non-execution of obligations specified in subitems of 1)-4) 6) and 8) the item 118, in case of which the National Bank has the right or to perform providing according to the subitem 7) of the item 122, or to perform assets for providing according to the item 123, or to use regulations on liquidating netting according to item 127;

f) certificates of National Bank of Moldova (further – certificates of NBM) – the debt obligations issued by National Bank as tools of the money market. Certificates of NBM are issued with discount and are redeemed on repayment date at par value with circulation period up to one year;

g) calculating date – date of implementation of calculations for transactions in the money market. Calculating date can be only in the working afternoon;

h) repayment date – date of implementation by the issuer of the redemption of government securities, certificates of NBM; expiry date of transaction in the money market of National Bank of Moldova;

h-1) the Central depositary - the legal entity determined thus as it is this in article 2 of the Law No. 234 of October 3, 2016 on Single Central Securities Depository;

i) release of certificates of NBM – transaction within which for the purpose of liquidity absorption the National Bank sells certificates of NBM to acceptable participants;

j) auction – the procedure by means of which the National Bank provides liquidity to the market or absorbs liquidity from the market on the basis of the requests submitted by the competing participants;

k) bystry auction – the auction procedure used by National Bank for transactions of thin setup in cases of need of bystry impact on liquidity situation in the market. Bystry auctions are, as a rule, carried out within 90 minutes from the moment of the announcement of auction;

l) standard auction – the auction procedure used by National Bank within the regular transactions in the money market. The National Bank announces to participants conditions of standard auction in the working day preceding holding the auction. All competent participants have the right to submit applications within the standard auctions;

m) margin of value adjustment (haircut) – control measure of risks which is applied to the assets used as providing in transactions of repo / the return repo and by provision of the secured loans by means of which the National Bank calculates asset cost provided to providing as market value of assets minus certain percent (value adjustment margin);

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