Moldova's economy in the first half of 2009 declined significantly compared with the same period last year. The small and medium-sized companies encountered considerable difficulties in raising loans from banks. The conclusions are contained in the transition report for the first six months of this year presented by the European Bank for Reconstruction and Development at the Summit of the Central European Initiative in Bucharest, Info-Prim Neo reports. Though the investment climate in Moldova has improved during the last few years, the implementation of the laws in the given area leaves much to be desired, said Erik Berglof, chief economist at the EBRD. “Moldova ranks 94th of 183 countries by its business climate,” the expert said. “The economy remains non-diversified. About 40% of the exports are directed towards the CIS and Russia, which were seriously hit by the world economic crisis.” The report shows that Moldova's GDP in 2008 rose by 7.2%, but fell by 7.8% in the first half of this year. Industrial production decreased by 25% in the period. The official reserves dropped by about US$500 million to US$1.210 billion, which is the equivalent of three months of imports and services. The foreign debt was US$4 billion or 68% of the GDP at yearend 2008. “Moldova is among the countries that have been seriously affected by the world crisis,” said the EBRD representative. 'The effects of the crisis will be long-lasting and can lead to a monetary, bank and currency collapse. At the same time, the crisis revealed the weak points of the world economies. Conditions must be now created to attract foreign investment, especially to the private sector.” Among the EBRD's priorities for the next years are: to adjust the banking systems, develop the regional capital markets, create competitive industrial polices, and improve energy security. In 2009, the EBRD will increase its investments by one third, up to 7 billion euros. In order to maintain the commercial flows, the EBRD will double the funds released for the trade facilitation programs to 1.5 billion euros. The bank will also provide financial support to banks, corporate sector, energy sector and infrastructure. Jean-Christophe Laloux, a representative of the European Investment Bank, said the loans released by the bank in 2009 increased by 30% to 70 billion euros. In 2010, the volume of loans will be larger. In 2007, the figure was 15 billion euros, while in 2008 – 18 billion euros.