The Governor of the National Bank of Moldova, Anca Dragu, says the country is preparing for the entry of a major international lender into its banking system, following reforms made in this sector, shaken a decade ago by a scandal that placed the country on the brink of bankruptcy, Bloomberg reports.

“I am sure that we will see some big international names in Moldova soon,” Anca Dragu said in an interview given on the occasion of the CEE Forum in Vienna.

“In terms of financial stability, we are doing well, and the banking sector seems quite strong. All banks are well above our capital requirements, and this means that there is room for further growth in lending activity,” Anca Dragu said, according to Agerpres.

The Republic of Moldova aims to join the European Union by the end of the decade. The National Bank of Moldova and the pro-European government of President Maia Sandu are promoting reforms aimed at strengthening Moldovan institutions and reducing corruption.

Anca Dragu highlighted recent developments that could help expand Moldova’s banking sector, saying the country now has ten well-capitalized and highly liquid banks. Moldova also joined the Single Euro Payments Area last year – a unified system for transactions in the common currency.

Although Dragu declined to provide details about potential imminent deals, local media reported that Moldova-Agroindbank SA, the country’s largest bank, owned by Heim Partners, could be the subject of a possible deal or listing.

However, Moldova is still reeling from the Russian invasion of neighboring Ukraine, which has disrupted economic activity and transport routes. Last year’s energy crisis pushed inflation close to double digits, even as the central bank gradually cut its benchmark interest rate to 5%.

“We believe this disinflationary trend will continue,” Dragu said, forecasting an average inflation rate of 4.3% this year.