Support for Moldova's reforms

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Speech transcript: Building a Balanced Economy - Sir Suma Chakrabarti, EBRD President

Delivered by: 

Sir Suma Chakrabarti, EBRD President

Venue: 

Chisinau, Moldova

Event: 

Joint International trip to Moldova

Improving the business climate key to prosperous future

The visit this week to Chișinău by the Presidents of the EBRD and EIB has come at a crucial time as Moldova maps out its economic future.

There is a fast growing consensus that that future is inextricably linked to the standards and values of the European Union.

By embracing those values, Moldova has embarked on a path that will raise the quality of life for all of the citizens of the country.

This was the statement that Moldova made in Vilnius in November 2013 when the authorities initialled agreements linking it with the European Union.

It is this path towards a modern, fair society that Moldova will be taking when those agreements are formalised later this year.

The national interests of Moldova are best served by working towards economic integration and harmonisation with the standards of the European Union.

To put it another way, Moldovans can look towards a more prosperous future by continuing to improve the business climate, by creating conditions that will attract financing from foreign and domestic investors alike.

The economic council, bringing together government, business and the IFIs and chaired by the Prime Minister, is developing into the type of institution that can make a real difference.

Moldova has made this choice - a choice to break down the bureaucratic barriers to investment, a choice to raise standards of corporate governance and a choice to tackle corruption at all levels of society, including in the judiciary.

We saw yesterday that these are not just words when the National Bank of Moldova, backed by the government, removed the voting rights of shareholders in Victoria Bank who were acting in concert.

The authorities acted decisively, courageously and collectively to implement the rule of law.

This is not an easy path to take. It involves facing up to entrenched vested interests, facing up to those who put personal interest, personal profit above the national interest. Making long-term strategic decisions that look beyond the immediate electoral calendar is that politicians and public servants to when they serve the national interest.

The presence of the EBRD and the EIB together in Moldova this week was a demonstration of our support for this shift during what will be a challenging but ultimately rewarding period.

We want to create a virtuous circle where implementation of reforms makes it easier for us to invest and our investments facilitate the process of reform.

We ask the government and authorities to continue to take actions for the good of Moldova. And we ask parliament to act in the national interest too - in the design and implementation of the necessary legislation. The EBRD will continue to apply in Moldova its 20 years of experience in fostering transition by a providing in Moldova significant stream of investment backed by practical support for the reform programme.

The EBRD is uniquely placed to provide this support. We are the largest single investor in Moldova.

We have so far carried out a total of 105 projects worth over 900 million euros. 2013 was a record year with investments of nearly 130 million euros in 15 projects and we expect to invest at least another 100 million euros in 2014.

We have just agreed an innovative project with Mobiasbancă that will bring extra financing to the all-important small and medium sized enterprise sector. And we signed together with EU and EIB a project to develop Chișinău’s water supply, following investments in trolley buses and road rehabilitation these investment provide basic services to the citizens of Moldova.

The EBRD's future strategy will focus on creating better conditions for private sector development, promoting European standards and regional integration and modernizing and improving infrastructure and municipal services.

The people of Moldova can rely on the support of the EBRD as the country embarks on the road to a fairer and more prosperous future.

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