The PRB 2020 Report: Falling GDP, Housing Lending and Direct Communication in Messengers

The negative situation in the economy of Pridnestrovie and the drought affected the conditions for the conduct of monetary policy in 2020. This was announced today at the plenary meeting of the Supreme Council of the PMR, presenting a report on the activities of the Pridnestrovian Republican Bank, said the Head of the PRB Vladislav Tidva. He emphasized that the drop in GDP in real terms was 6.5%. In neighboring Ukraine and Moldova, the situation is similar - a drop of 4 and 7%, respectively. The enterprises of the light industry, the food industry, mechanical engineering, the building materials industry, construction, and trade were affected. The greatest losses are in agriculture. The situation in the economy was corrected due to the contract for the supply of electricity and the improvement of the metal market situation since August 2020. The fight against coronavirus and state support measures for those who suffered from it made their "contribution" to the negative scenario of the formation of income and expenses of the consolidated budget.

Since 2017, the main efforts of the Central Bank have been aimed at stabilizing the banking system and as of January 1, 2021 a set of measures within the framework of the Law on Stabilizing the Banking System has been completed. Thus, it was possible to localize the systemic banking crisis. It could lead to a massive withdrawal of deposits and a loss of public and business confidence in the banking system as a whole. Meanwhile, the Pridnestrovian Republican Bank has been recording a constant increase in savings in deposits since 2018.

Vladislav Tidva said: in 2020, within the framework of lending to legal entities, in addition to standard programs, a mechanism was used to subsidize interest rates on loans in priority sectors - for the purchase of fixed assets and other support programs. 19 million rubles were spent on subsidies from the budget. These are mainly agricultural enterprises, including the processing of agricultural products.

The scope of responsibility of the Pridnestrovian Republican Bank has significantly expanded over the past few years. The Pridnestrovian Republican Bank was legally assigned the function of control and supervision of insurance activities in 2018. The regulatory framework for regulating insurance activities in the republic corresponding to international practice during this time has been created in fact. Today there are two insurance organizations operating in the republic. After the adoption of the law on microfinance activities, control and regulation of the microfinance services market was added to the functions of the Central Bank in 2020.

The Pridnestrovian Republican Bank as a regulator has established a direct communication channel in popular messengers. Consumers of financial services on all emerging issues can contact directly and the Pridnestrovian Republican Bank can respond promptly.

Deputies of the Supreme Council of the Pridnestrovian Moldavian Republic heard the report on the activities of the Pridnestrovian Republican Bank in 2020 and adopted a corresponding resolution.