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Supporting Moldova to achieve sustainable growth
EBRD launches new country strategy
Despite strong growth rates in recent years, Moldova remains the poorest
country in Europe with an estimated GDP per capita of $719 in 2004. Only
sustainable growth over a prolonged period of time will improve living
standards. Long-term prosperity will depend on renewed efforts to implement
structural reforms, strengthen market institutions and improve the investment
climate, the EBRD says in its new strategy
for Moldova.
In its assessment the Bank has established a number of challenges that need to
be addressed. Moldova has to reduce government interference, strengthen its
regulatory authorities, streamline its legal framework and fight against
corruption to establish fair competition and improve the investment climate.
Economic diversification should help reduce the country’s strong dependence on
agriculture and exports to CIS markets.
The EBRD’s priorities as outlined in the strategy are:
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The Bank will support micro, small and medium sized enterprises with credit
lines and work with local banks to overcome lending constraints. The EBRD will
seek to extend its cooperation to new partner banks and assist in the
development of new financial instruments.
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The Bank will continue to pursue investment opportunities in all enterprise
sectors and facilitate foreign direct investment either by investing alongside
foreign strategic investors or by assisting the development of local companies.
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By supporting private infrastructure investments the EBRD will seek to redress
the balance between the capital city and the regions, especially in rural
areas.
As of June 2005 the EBRD has signed 36 projects for a cumulative business
volume of €177.7 million in Moldova. The average project size is €2.9 million.
The country is part of the EBRD’s Early Transition Countries initiative,
designed to address the needs of the poorest countries in which the Bank
operates.
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