EBRD approves 2014-2017 strategy for Moldova

By Olga Rosca
@olgarosca

The EBRD Board of Directors has adopted a new strategy for Moldova which sets out the Bank’s priorities and objectives over the next three years.

Building on a strong history of investment in Moldova, the strategy for 2014-2017 focuses on creating an environment that supports private sector activity, promoting European standards and regional integration and developing efficient and sustainable public utilities.

  • Creating the conditions to support private sector development: The Bank will support measures to improve the business environment, both through investment projects which help attract foreign direct investors, as well as through engaging with the Moldovan authorities to promote much-needed reforms. The EBRD will continue supporting the Economic Council, an advisory body to the Prime Minister, which brings together policy-makers and the business community with a view to enhancing the business climate. Improving the business climate is crucial for the Bank’s ability to further support the private sector and attract investment. Governance and transparency in the banking sector are particular concerns and the EBRD will work closely with the authorities to address them
  • Promoting European standards and regional integration: The Bank will invest in projects which will help Moldova develop value-added exports – especially in manufacturing and agribusiness sectors – which will be competitive in regional markets. As Moldova and the EU are moving forward towards a Deep and Comprehensive Free Trade Area (DCFTA), Moldovan companies need to adopt higher production and quality standards than those currently applied. In addition, the EBRD will continue to finance improvements in the country’s infrastructure to develop links to neighbouring countries as well as internal transport infrastructure needed to bring domestic producers closer to their markets. The Bank will contribute to strengthening energy security and efficiency, and will help develop the telecommunications sector.
  • Enhancing commercialisation and sustainability of municipal enterprises: The Bank will continue to finance regional and municipal water supply companies and will look into ways to modernize district heating and solid waste management and promote public-private partnerships (PPPs) in the sector.

Julia Otto, head of the EBRD office in Chisinau, said: “We welcome progress made by Moldova and encourage the authorities to persevere with further implementation of institutional reforms to ensure independent and impartial judiciary, reduce corruption, further improve business climate and strengthen the independence of the National Bank. The EBRD remains committed to helping Moldova pursue reforms needed to advance to an open-market economy.”

In its activities the EBRD will continue to cooperate closely with other international financial institutions and multilateral and bilateral partners, including the EU.

The EBRD is currently the largest institutional investor in Moldova. To date, the Bank has signed some 100 investments in the country, covering the energy, transport, agribusiness, general industry and banking sectors, for a cumulative amount of over €900 million. The EBRD is also pursuing intensive policy dialogue to tackle key transition challenges across sectors.