Germany will allocate a grant of 10.7 million euros to support Moldova's business development and entrepreneurs' access to cheaper financial resources under favorable terms
The Ministry of Economic Development and Digitalization and the Organization for Entrepreneurship Development (ODA) announced this, informing about the signing of an agreement on the implementation of a new financing project for small and medium-sized enterprises in Moldova, “Moldova SME Development Fund”. This document complements the grant and project agreement signed on March 11, 2024 between the German bank KfW, the Ministry of Economic Development and Digitalization and the Organization for Entrepreneurship Development (ODA), through which Moldova will receive a grant of up to 10.7 million euros from the German Federal Ministry for Economic Cooperation and Development, through the German Development Bank (KfW) to support the development of the local business environment. According to the document, the funds are allocated for 2 strategic directions. A grant of 10 million euros is earmarked exclusively for the Fund for Entrepreneurship and Economic Growth of Moldova (FACEM), managed by the ODA, to support the on-lending of partner financial institutions that will provide investment loans to small and medium-sized enterprises. The grant of up to 700 thousand euros is allocated for advisory services to support ODA in the effective implementation of the project and to provide the necessary support to participating partner financial institutions. “Financial resources are needed to develop the economy. And that is exactly what we are doing. We are providing access to low-cost financial resources for our entrepreneurs to invest, grow and create new high-paying jobs here at home. Through this program, entrepreneurs will expand their businesses, increase their capabilities, and become more productive and competitive. We are grateful to the German Development Bank for its support,” said Dumitru Alaiba, Minister of Economic Development and Digitalization. ODA Director Vadim Codreanu said that the organization he heads has taken over the implementation of one of the most valuable and ambitious projects for the development of entrepreneurship in Moldova. The new SME development mechanism will give SMEs access to financial resources, supporting them to expand and consolidate. “This is an important step in supporting the national economy and the stability of the entrepreneurial sector,” said Vadim Codreanu. “Moldova SME Development Fund” project will launch a new credit product designed for SMEs, aimed at supporting their expansion and consolidation, providing access to financial resources and new development opportunities. “Moldova SME Development Fund” project is part of a broader commitment to strengthen the national economy by supporting SMEs, which are an important pillar of Moldova's progress and economic stability. // 05.11.2024 – InfoMarket
