Economy Ministry prepares preconditions for financing venture capital

The Ministry of Economy intends to draft a special law that would create the legal preconditions needed for the functioning of funds for financing the venture capital of innovative activities, Info-Prim Neo reports. According to a communiqué from the Ministry, the banks are not disposed to finance innovative activities because they imply high risks. Thus, the development of this area is not stimulated. The UNDP will provide assistance to the Ministry in making an analysis of the impact of preliminary regulation so as to take a decision as regards the necessity of adopting such a law. Ion Lupan, the head of the General Industrial and Competitiveness Policies Division, said that a functional law is needed. “Access to financing is also needed for increasing the competitiveness potential of the national products. Given the regional financial crisis and the low number of loans provided to the real sector of the economy, the creation of conditions for facilitating the development of venture capital funds is imperative,” he stated. Minister of Economy Valeriu Lazar referred to two different ideas concerning the development of the innovative system in Moldova. One of these ideas is to design an innovative entrepreneurship strategy, while the second is to work out a much more complex strategy that would represent an intersector approach. The development of the legal framework for the venture capital is a necessity deriving from the low access to financing for innovative activities on the one hand, and the low level of innovation absorption and technology transfer on the other hand.