Moldova must prepare for the issuance of the first Eurobonds in order to diversify sources of financing in the external market.
This was discussed during a press club organized by the Independent Analytical Center Expert-Group in partnership with the Ministry of Economic Development and Digitalization to discuss the prospects for the issuance of the first Eurobonds by Moldova. Deputy Prime Minister, Minister of Economic Development and Digitalization Dumitru Alaiba noted that Moldova is the only country in Europe and one of the few in the world that has not issued its sovereign Eurobonds, and it is probably the only one that has only one rating agency. “This affects our image and does not help us in the discussions that we have with foreign investors, which is a guideline for them,” Dumitru Alaiba said. He emphasized that Eurobonds have become an important source of financing for governments and companies around the world due to their access to a wide base of international investors. “It is imperative that Moldova turns to the external financial market both to diversify funding sources and to establish an external benchmark for the national economy,” said the Deputy Prime Minister, Minister of Economic Development and Digitalization. According to the Ministry of Finance, within the framework of the press club, its participants discussed the prospects for issuing Eurobonds by Moldova, as well as the main aspects related to the financial instrument of Eurobonds. In particular, they talked about the features of the issue of sovereign Eurobonds, the perception of citizens of this instrument, as well as the general framework for issuing Eurobonds by Moldova, including the benefits and risks, specific conditions, as well as the management of this process. The State Secretary of the Ministry of Finance, Ion Gumene, referring to the prospects for the issuance of Eurobonds by Moldova, noted that, from the point of view of the Ministry of Finance, Eurobonds are not only a financial instrument, but also an important indicator of development for national and international investors, European partners, including in the context of the fact that The Republic of Moldova is a candidate for EU accession. “Thus, the issuance of Eurobonds, taking into account the fact that it depends on the rating of the country conducted by international companies, indicates that the country is moving ahead with reforms in a number of areas, creating prerequisites for economic development, stability and predictability of the business environment. However, the issuance of Eurobonds is a complex process for which it is necessary to prepare in advance,” Ion Gumene emphasized. According to him, the priority actions for the near future are to attract a second company to conduct the country rating, improve the country rating, develop the institutional framework necessary for the preparation, issuance and effective management of Eurobonds, and, most importantly, identify and develop a country project by investing in which, the state will contribute to accelerated GDP growth in the medium and long term.// 07.06.2023 — InfoMarket
