The Government launched the investment incentive program 373. As part of this, the persons who want to make investments will be able to apply for a bank loan repayable in up to seven years, with a grace period of three years. The highest interest rate is 7% on loans in lei and 3% on loans in foreign currencies. The difference between the given rates and the bank’s rate will be covered by the state, IPN reports.
“373 is known by everyone as the country code and I think that every Moldovam knows this number. Let’s decipher it. What does 3 mean? Three comes from the interest rate of 3% on loans in foreign currencies, in our case euros or dollars. Seven comes from the 7% interest rate on loans in Moldovan lei. Three is also the grace period for a loan repayable during a period of up to seven years. The difference between the interest rate on the market, which is normally used by the commercial banks, and this ceiling of 3% in the case of foreign currencies and of 7% in the case of lei will be subsidized by the Government” explained Dorin Recean, noting the goal is to stimulate investment and economic development.
The official said that through the agency of this program, the state aims to encourage investments in small and medium-sized enterprises, to increase the number of jobs, to enhance export capacities and to raise salaries by improving productivity. “The conditions for taking part in the Program 373 are very simple. One should have a program or an investment initiative. If the person signs a lending agreement with the bank, the Government will subsidize the interest rate through the Fund for Entrepreneurship and Economic Growth (FACEM). We will subsidize loans of up to 15 million lei or the equivalent in foreign currencies, repayable in seven years. The beneficiaries or entrepreneurs must contribute only 10% of the value of the investment program” stated Dorin Recean
The program will become available on June 1.Until then, a Government decision on the operationalization of the Program 373 is to be approved. Immediately afterward, the state will sign the necessary contracts with banks. A website devoted to the given program is to be launched.
