Announcements

Moldovan small and medium-sized enterprises will have access to long-term financing under a preferential lending fund. Today, public discussions on the creation of Moldova’s Entrepreneurship and Growth Fund (facem), new instrument in the Organisation for Entrepreneurship Development (ODA) portfolio. The objective of the Fund is to provide businesses with low interest rate credit growth potential via partner banks and other financial institutions. According to the expectations put forward by the specialists, the costs of our lending resources are to be at least 30 % lower than those prevailing in the financial system.

Present at the event of the presentation of the new tool Prime Minister Natalia Gavrilița, Minister Sergiu Gaibu economy, representatives of development partners, financial institutions, business associations and experts in the field.

Prime Minister Natalia Gavrilița stated that this government initiative aims to support and developing small and medium-sized enterprises in the strategic and priority areas of the national economy.

“Such a fund is absolutely necessary for our European future. I am glad that, despite all overlapping crises, we are not only able to improve the programmes for entrepreneurs, to increase the budget to support SMEs, but also to come up with mechanisms for the foundation of future growth. We hope to accelerate together on the path of reforms and thus open the negotiating chapter with the EU and access significant financial resources to invest in Moldova’s economic progress”.

Minister for Economic Affairs, Sergiu Gaibustressed that we would implement an alternative low-cost financing instrument for investment projects initiated by entrepreneurs.

“The Republic of Moldova, for 30 years, has been facing the issue of financing, i.e. long-term resources at reasonable costs for economic operators. These are very limited in the banking system. Basic sources are deposits of up to one year. And alternative instruments are very few. We are a fundamental component, as it is not credit that pays the predominantly fixed interest rate cheaply, it will be very complicated to offer growth to the national economy. Here we will also play an important role at the macroeconomic level, as it will stabilise the economy, make it easier to overcome economic crises, especially inflation. So we will be able to obtain jobs, more modern technologies, higher investment, higher productivity, higher GDP and higher wages. We want to reach a portfolio of at least lei 2 billion in the first stage, but the ultimate goal is to reach lei 4 billion. That is 8 % of the current loan portfolio, which is also composed of consumer credit and credit to economic agents’, mentioned Minister Gaibu.

According to interim Director ODA, Dumitru Pinianby creating the state, we will remove an important barrier to the development of the HEIs, providing entrepreneurs with favourable, long-term funding opportunities.

‘The costs of our borrowing resources (interest rates) will be at least 30 % lower than the financial resources currently raised by the MIFICs from banks and non-banks. Part of the funding could have a grant component, which implies that we will offset part of the interest rate or part of the credit rates depending on the available resources. The Fund will also combine financing products with the ODA financial guarantee instrument. Thus, part of the loan will be guaranteed by ODA, which leads to taking part of the credit risk and as a result, it will reduce the credit risk borne by the banks.“said Dumitru Ptead,

During the event, speakers of the discussion panel Adrian Lupușor Executive Director, Expert-Grup referred to constraints the access to finance of the national economy; and Kurt StrasserDirector Representation KFW Bank in Ukraine and Moldova, and Paweł ChorazyHead of European Funds at BGK presented international experience in the implementation and management of financial products.

The Fund is managed by ODA, which will develop the necessary funding products and instructions for the sound, transparent and efficient management of money. Our financing products will be developed in accordance with the public policy priorities set by the Government, the Ministry of Economy and other relevant state institutions. They will also take into account the conditions set out in the agreements with development partners and donors. The HMMs will be able to access financing products (adavourable loans) via banks or other financial institutions, which have concluded a collaborative agreement with ODA.

The financial resources we will consist of will come from state budget allocations, financial means allocated by development partners and/or donors (loans/loans, financial and technical assistance, grants), lending and re-credit revenues and other legal sources. For the capitalisation of the Moldovan Entrepreneurship and Growth Fund (facem) financial resources amounting to lei 70 million were budgeted for 2022. Over the coming years, additional capitalisation of lei 2.7 billion is expected (2023 – lei-450 million; lei 2024-1 billion in 2025 to lei 320 million as well).

The event was organised by the Ministry of Economy and the Organisation for the Development of Entrepreneurship with the support of GIZ Moldova, the German Government and the Swedish Government.