Moldova launches first state aid facility for industry

Chisinau, Dec. 20 /MOLDPRES/- Deputy Prime Minister Dumitru Alaiba announced today the launch of the first state aid mechanism for investments in Moldova's industry. It implies that the state will reimburse up to 60 percent of the value of investments to companies that will develop business in processing industry. The total budget of this mechanism for the next 10 years is at least 2 billion lei, and the authorities estimate total investments of at least 500 million euros in priority sectors by 2036.

"State aid is a powerful instrument, a clear commitment through which we encourage new investments, support business expansion and creation of new factories, plants and new secure and well-paid jobs in our country," Alaiba said.

The new mechanism will support companies investing in areas such as the electronics industry, the chemical and pharmaceutical industry, the machinery and car component manufacturing industry, the textile and clothing industry, the building materials industry, the food industry.

"This is the first time that the Republic of Moldova is launching such a state aid mechanism in line with European practices and standards. It was not easy to get here. For almost two years we have been working on what we are announcing today. This mechanism does not only mean figures and investments, it means better jobs for our people, especially for young people, it means opportunities for Moldovan families and for those who have left, who want to come back home", he said.

Dumitru Alaiba said that 25 percent of the amount of state support will be provided immediately as grants, while the remaining 75 percent of the amount will be allocated in the form of income tax exemptions.

To receive support, companies must meet several eligibility criteria. One of them is that the investment must be a new one and be made specifically in the manufacturing sectors. Its value must be at least 10 million lei.

The total budget of this mechanism for the next 10 years is at least 2 billion lei, with the possibility of extending it in case of higher demand. Dumitru Alaiba added that, according to the National Industrialization Programme, by 2036 the authorities forecast total investments of at least 500 million euros in priority sectors.

Applications for the new mechanism can be submitted to the Ministry of Economic Development and Digitization starting 1 January 2025. Applications will be analyzed within a short deadline so that projects can be implemented as quickly as possible.