Moldovan PM says access to long-term investment resources at reasonable interests means growth of business, creation of jobs

Chisinau, 20 September /MOLDPRES/ - Prime Minister Natalia Gavrilita today participated in an event on the launch of public discussions on the creation of the Fund for Entrepreneurship and Economy’s Growth of Moldova (FACEM). Through this new governmental mechanism of financing the business environment, the small- and medium-sized enterprises from Moldova will have access to long-term financing, to a crediting fund with preferential conditions, backed by the state, the government’s communication and protocol department has reported.   

Natalia Gavrilita said that, through this governmental initiative, decision-makers aimed at supporting and developing the small- and medium-sized enterprises (SMEs) from the strategic and priority sectors of the national economy. ‘’Such a fund is absolutely necessary for our European future. I am happy that, despite all overlapped crises, we manage not only to improve the progress for entrepreneurs, to increase the budget for backing SMEs, but also to come up with mechanisms for the foundation of growth in the long run. We hope to speed up together on the way of reforms and thus to be able to start the chapter of negotiations with EU and access financial resources, in order to invest in Moldova’s economic progress,’’ the PM stressed.       

The prime minister enumerated also the medium- and long-term effects the successful implementation of the FACEM fund would generate, such as: development of SMEs from the strategic and priority fields of the national economy; stimulating the creation and maintenance of jobs; enhancing the financial support provided by the state to SMEs; facilitating the businesses’ access to financing and enhancement of their competitiveness.   

„The access to long-term investment resources with reasonable interests means growth of the business and creation of jobs. According to the impact analysis, in the next three years, FACEM might finance at least 2,800 investment projects and create about 20,000 jobs. Namely though such instruments, which are successfully enforced in other European states, we can ensure the improvement of the quality of living of all citizens,’’ Natalia Gavrilita also said.   

Economics Minister Sergiu Gaibu highlighted that, through FACEM, decision-makers would turn to account an alternative instrument of financing at low costs for investment projects initiated by entrepreneurs. ‘’FACEM is the solution which will help us overcome the crisis phases much easier, more efficiently and will level up the fluctuations triggered by the economic cycles. Thus, we will be able to get jobs, more modern technologies, bigger investments, higher productivity, bigger Gross Domestic Product (GDP) and higher salaries,’’ the economics minister noted.    

According to the acting director of the Entrepreneurship Development Organization (ODA), Dumitru Pintea, through the creation of FACEM, the state would remove an important obstacle to the development of SMEs, giving entrepreneurs advantageous and long-term opportunities of financing. ‘’The costs of the crediting financial resources (interest rates) accessed through FACEM will be by at least 30 per cent lower than the financial resources attracted by SMEs from banks and non-bank institutions at present. A part of the financings might have a grant component, which implies that, depending on the resources available, FACEM will compensate a part of the interest rate or a part of the credit rates. At the same time, the Fund will combine the financing products with ODA’s financial guarantee instrument,’’ Pintea said.  

The Fund will be managed by ODA, which will work out, develop and approve the products of financing and instructions needed for the correct, transparent and efficient management of money. FACEM’s financing products will be elaborated in line with the priorities of the public policies established by the government, the Economics Ministry and other relevant state institutions. They will also take into account the conditions established in the agreements with the development partners and donors. The SMEs will be able to access financing products through banks or non-bank crediting organizations, which concluded a contract on cooperation with ODA.    

The financial resources, FACEM will be made up of, will come from the state budget allocations, financial means earmarked by development partners and donors, incomes got from crediting and re-crediting and from pother legal sources. Financial resources worth 70 million lei were budgeted for FACEM’s capitalization for the 2022 year. During the next three years, additional capitalization of 2.7 billion lei is planned.  

Photo: Government