The World Bank approved financing of the Micro, Small and Medium Size Enterprises (MSME) Competitiveness Project tin Moldova in the amount of $50 million.
In particular, this project, approved by the Board of Directors of the World Bank, will help our country reduce the regulatory burden, increase access to finance, improve the competitiveness of exports of Moldovan enterprises, as well as, in case of possible crisis or emergency, to respond quickly and effectively to them. As noted in the World Bank's materials, Moldova's rapid recovery, noted in 2021, will be constrained this year by the ongoing war in Ukraine. It is expected to have a significant impact through trade and remittance channels, as well as high energy prices and financial uncertainty. The country's labor market has recovered from its COVID-19-induced low, but remains structurally weak, while its fiscal and external positions are expected to face further difficulties. Moldova has a low density of micro, small and medium enterprises (MSMEs): in 2020 there were only 13.5 micro, small and medium enterprises per thousand inhabitants. A relatively small number of Moldovan enterprises are engaged in exports, while the investment climate is still not fully conducive to enterprise development, and enterprises have problems accessing finance. The MSME Competitiveness Project in Moldova will help digitize government inspections and services for businesses, simplify permitting documentation and improve the national quality infrastructure to reduce the regulatory burden on businesses. The project will facilitate businesses' access to financing through credit guarantees and expand the capacity of the Credit Guarantee Fund. It will also support the development of MSMEs and increase their export competitiveness. World Bank Country Manager for Moldova Inguna Dobraja said the MSME Competitiveness Project will continue the long-standing engagement of the World Bank Group with the Moldovan authorities in finance and private sector development issues that we have had over the last decade. "The project is aligned with the Government strategy to support development of MSMEs and will indeed help to enhance and make business services more efficient through digitalization. It will also enable MSMEs become more competitive and facilitate their access to finance, which will help increase Moldovan exports and add jobs," she stressed. A large number of private companies and state institutions will benefit from the new WB project. Firm beneficiaries of the Matching Grants Facility (MGF) will include new and prospective, direct and indirect exporters. The instrument will also benefit business development service providers. In addition, ODIMM will benefit from getting access to an experienced technical and operational team and capacity building activities that will help the institution acquire the necessary knowledge and expertise to implement the MGF. The Project will also benefit female-owned/female-managed firms, which are disproportionately less likely to export than male firms, as well as have more difficulty getting a loan. Since Moldova joined the World Bank in 1992, over $1.3 billion has been allocated to more than 60 operations in the country. Currently, the World Bank portfolio includes 12 active projects with a total commitment of $638.1 million. Areas of support include regulatory reform and business development, modernization of government services, tax administration, land registration, education, roads, health and social sectors, including the COVID-19 emergency response, agriculture, water and sanitation and energy. // 28.06.2022 – InfoMarket
