The Cabinet approved a bill to ratify the agreement on the mutual promotion and protection of investments between the Government of Moldova and the Government of Turkey that was formulated in Istanbul on December 16, 2016, IPN reports.
The document will give Turkish and Moldovan investors confidence that their investments are protected and there are clear rules of activity in this sector. Compared with the agreement in force that was signed on February 14, 1994, the new accord envisions the payment of compensations if the benefits are lost or are not provided. A series of provisions specify the procedures for notifying and processing the documents of the sides after the new intergovernmental agreement takes effect.
The new agreement will be valid for ten years and could be extended automatically for consecutive terms of five years if the signatories do not decide to scrap it.
According to the Public Services Agency, in Moldova there are over 1,300 enterprises with Turkish capital. The investments in their share capital come to about 420 million lei. In 2017, trade between Moldova and Turkey exceeded US$ 408 million, an increase of 22.5% on 2016, Turkey being the seventh largest commercial partner of Moldova.
