Report of the Pridnestrovian Republican Bank on work in 2022

The geopolitical situation around Pridnestrovie significantly influenced the situation in the financial sector of the PMR last year. Chairman of the PRB Vladislav Tidva began his report on the report on the activities of the Central Bank in 2022 with an assessment of the external situation.

Among the main factors that had a significant impact on the development of the economy in 2022 were:

- high imported inflation for finished products (led to an increase in domestic prices);

- breaking the logistics chains of Pridnestrovian enterprises with partners from Russia and Ukraine, which led to restrictions on the delivery of enterprises' products and a multiple increase in transportation costs;

- sanctions against the banking system of the Russian Federation negatively affected the ability to pay for imports and receive revenue for Pridnestrovian goods exported to the EU;

- the absence of the required volume of natural gas in the gas transmission system during 2022, which negatively affected the production sector;

- difficulties with the export of agricultural products, in particular the grain group, including due to the exclusion of the Odessa port as a transport hub.

Vladislav Tidva emphasized that the above factors led to a reduction in GDP in real terms by 14.7%, and in industrial production by 21.3%. The results of the activities of agricultural organizations were below the parameters of 2021, which is associated with a decrease in crop yields due to adverse weather conditions in the 2021-2022 season.

There are some positive results in the PRB 2022 Activity Report. Thus, monetary policy has retained the principle of continuity and is being implemented within the framework of targeting the US dollar exchange rate against the PMR ruble. The real effective exchange rate of the Pridnestrovian ruble is used as the main indicator.

According to Vladislav Tidva, the situation in the financial market of Pridnestrovie remained stable. The state continued lending to legal entities under standard programs, including subsidizing interest rates on loans for priority sectors of the economy for the purchase of fixed assets. 183 organizations have applied for preferential loans since the start of this program.

The population continues to use loans, and more in rubles. The average debt burden on individuals is 20%, the recommended values are 30%. Lending to the population continued under the programs of preferential mortgage lending. There are three ways to buy a home:

- the presidential program "Completion of construction of unfinished residential facilities on shared participation" (37 families received their own housing through lending in 2022, loans were issued in the amount of 3.3 million rubles);

- own programs of commercial banks for preferential lending to public sector employees for the purchase of housing in the secondary market (93 families took out loans in the amount of 17.0 million rubles);

- the state program on housing certificates for young families (76 borrowers received loans in the amount of 17.6 million rubles).

All loans are issued for up to 10 years and are denominated in rubles without reference to foreign currency.

The head of the PRB noted that as for non-cash payments and bank cards, their number has increased.

The number of operations on bank transfers from card to card, including by phone number, increased by 2.6 times. Transfers by phone number from Russian bank cards to Pridnestrovian ones and vice versa are popular.

There are two insurance organizations in the field of insurance in Pridnestrovie. Insurers concluded more than 109 thousand contracts in 2022 (this is 1.2% less than in 2021). At the same time, the volume of insurance payments for all types of insurance amounted to 14.4 million rubles, which is 17% more than in 2021. Insurance organizations switched to new accounting standards and a chart of accounts that comply with modern principles from January 1, 2023.

Chairman of the PRB Vladislav Tidva emphasized that the audit of the Central Bank of Pridnestrovie was carried out by a Russian auditing company, there are no complaints. The Accounts Chamber of Pridnestrovie has no complaints about the work of the PRB.