Moldova will receive a loan of 47.5 million euros from the World Bank Group to improve the competitiveness of small and medium-sized enterprises.
This is provided for by 2 relevant agreements on financing the Project for Improving the Competitiveness of Micro, Small and Medium Enterprises, which Moldova signed on July 7 with the International Bank for Reconstruction and Development and the International Development Association (part of the WB group), the Moldovan Parliament approved in the first reading draft laws on ratification of agreements. In particular, for the implementation of the project, the International Bank for Reconstruction and Development will provide Moldova with a loan of 17.7 million euros, and the International Development Association - 29.8 million euros. Repayment holidays will be 5 years for both loans, and payments on them will begin on July 15th. At the same time, payments under the IBRD loan of 17.7 million euros until January 15, 2056 will be carried out taking into account the interest rate of 1.67% per annum, and after that - at 1.47% per annum. Herewith, payments on the loan of the International Development Association in the amount of 29.8 million euros will be made until January 15, 2047 at an interest rate of 1.65%, and after that - until January 15, 2052 - at 3.4% per annum. In general, the MSME Competitiveness Project will be implemented in 2023-2027. It is aimed at reducing the burden and regulatory costs for the business environment, facilitating access to finance and increasing the export competitiveness of Moldovan enterprises. The overall goal will be achieved through a set of activities. In particular, the project includes the following components: digitization of public services for the business environment and state control, optimization of the number of permits and improvement of the national quality infrastructure to reduce regulatory costs faced by enterprises; facilitating the access of enterprises to financing through loan guarantees and increasing the size of the Credit Guarantee Fund; supporting the development of SMEs and improving export competitiveness. Under the agreement, the Ministry of Economy will be the central government body responsible for the implementation of the project and will work closely with the Ministry of Finance, the Public Services Agency and other government agencies with private sector support and export promotion functions, such as ODIMM, the Investment Agency, the National Institute of Metrology, etc. As Minister of Economy Sergiu Gaibu noted that the funding will supplement efforts to implement the internationalization program and help Moldovan enterprises reorient themselves to new markets. He also stressed that the project will contribute to the development of quality infrastructure and conformity assessment bodies, which, in turn, will be an important step for the access of livestock products from Moldova to the European market.// 15.07.2022 — InfoMarket
