The Government of the Federal Republic of Germany provides, through the German Development Bank (KfW), €10.7 million in non-reimbursable assistance. The money will be used to improve access to finance for small and medium-sized enterprises, namely the exclusive refinancing of investment loans granted to SMEs through the Fund for Entrepreneurship and Economic Growth, IPN reports.
The financial agreement on the implementation of the project “Moldova SME Development Facility” was signed by representatives of the German Development Bank (KfW) with the Ministry of Economic Development and Digitalization and the Organization for Entrepreneurship Development (ODA).
Minister of Economic Development Dumitru Alaiba highlighted the productive cooperation between the governments of the two states through projects carried out within the framework of German development cooperation. These include the development of the necessary framework for the establishment of the Fund for Entrepreneurship and Economic Growth of Moldova, the regulation of the remote services sector, as well as support for ODA and other implemented initiatives.
“The Federal Republic of Germany has always been a reliable partner of the Republic of Moldova, offering us support in the most difficult situations. Today, the German state reaffirms its support for the citizens of our country through this non-reimbursable financial contribution, meant to support sustainable economic development. I sincerely thank Germany not only for this financial support that is particularly important in the current tumultuous context, but also for the unconditional support provided in our European integration process,” said Dumitru Alaiba.
Dr. Merle Kreibaum, Head of the Cooperation Section of the Embassy of Germany in Chisinau, noted that following the obtaining of the status of EU accession candidate, Moldova is carrying out concrete actions, including at economic level, thus marking significant progress in the integration process. “Improving the business climate, creating jobs and, therefore, a perspective for young Moldovans at home are among the main objectives of Moldovan-German development cooperation. In this respect, access to finance plays an essential role for the growth of SMEs, especially for women,” said the Head of the Cooperation Section.
“KfW is very pleased to be able to sign this first Financing Agreement with the Ministry of Economic Development and Digitalization and ODA to the value of €10.7 million, funded by the German Federal Ministry for Economic Cooperation and Development, and thereby boost SME financing, investment and job creation in Moldova on the path of accession to the EU,” stated Eva Schlarb, portfolio manager at the German Development Bank.
The signing of the Financial Agreement was preceded by an evaluation mission last summer, which involved representatives of the German Embassy in Chisinau, the KfW Central Office in Germany, the KfW Office in the Republic of Moldova. The project implementation period is three years.
