EU, top European bank launch programme on support of free trade zone with Georgia, Moldova, Ukraine

Chisinau, 12 May /MOLDPRES/ - The European Union and European Bank for Reconstruction and Development (EBRD) have launched a programme worth about 400 million euros for enterprises of Georgia, Moldova and Ukraine. The joint programme will help local entrepreneurs from the three countries to fully benefit from opportunities provided by the Deep and Comprehensive Free Trade Area (DCFTA) with EU.

A press release by EBRD and European Commission reads that the financial institution will provide 380 million euros in loans and trade guarantees to local banks and other financial institutions for crediting enterprises. EU will make available 19 million euros in technical assistance, stimuli for investments and risk-sharing mechanisms. At the same time, EBRD and EU will continue backing the improvement of the investment climate through dialogue on public policies.    

The setting up of free trade areas is part of the EU’s association agreements with Georgia, Moldova and Ukraine. This will provide local enterprises with access to the EU’s single market – the biggest one worldwide, and will help stimulate the development and economic growth in the three countries.  

The signing marks the first phase of the EBRD’s and EU’s joint programme worth 1.2 billion euros. EU is expected to provide 56.5 million euros in grants, in order to help enterprises invest in improving the standards of quality of goods and services.

“This is really an initiative which changes the game rules for the benefit of everybody: will help local companies become more competitive, while consumers will benefit from products and services of better quality,” EBRD Acting Vice President on Polices and Partnerships Alain Pilloux said. This will also contribute “to turning to account the entire potential of export of the enterprises from these three countries, as this will give them access to the European market.”   

“The small- and medium-sized enterprises represent the engine of the local economy. This programme will help them take full advantage of the opportunities provided by the free trade area with EU, thus contributing to the global economic growth in the partner countries,” Deputy Director General of the DG for  Neighbourhood & Enlargement Negotiations Katarina Mathernova said.     

BERD is the biggest institutional investor of the three countries. The Bank has invested 2.6 million euros in Georgia, one billion euros in Moldova and 11.6 billion euros in Ukraine.  

(Reporter V. Bercu, editor A. Raileanu)