Moldova's governor steps down

Reuters reports that the bank chief is first head to roll in a $1 billion fraud, which has led to political turmoil and increased hardship in the small, largely rural state bordering Ukraine and Romania.

Bank Governor Dorin Dragutanu told journalists he and his first deputy, Marin Molosag, had tendered their resignations to parliament though they would stay on in a caretaker role and take part in sensitive talks with an incoming team from the International Monetary Fund.

In a related news reported by AP, the IMF said Moldova could not hope for a new loan anytime soon.

The International Monetary Fund says it will not negotiate a new loan program with Moldova during its visit to the country, dashing the government's hopes of an immediate agreement to help cover pensions and salaries. In a statement, the IMF said it is visiting for consultations and to "initiate discussions" that could later form a basis for a program.