State provides 1 leu for every leu from remittances invested in business

Each second Moldovan has at least one relative working abroad. Almost 70% of the migrants intend to return home sooner or later, while 12% of them want to invest in business. The figures were made public in a roundtable meeting held to launch the pilot Attraction of Remittances to the National Economy Program – PARE 1+1, Info-Prim Neo reports. Deputy Minister of Economy Octavian Calmac said the aim of the program is to efficiently use the remittances in economy by helping the migrant workers or the relatives of the first degree to invest money in production and services by creating and developing private companies. The beneficiaries of the program will be able to attend training courses on entrepreneurship, where they will find out about successful examples in Moldova and other countries that implemented similar programs. The program participants can also obtain a grant for starting and developing a business. The state will give 1 leu for every 1 leu from remittances invested within the program. The highest non-reimbursable sum will be 200,000 lei. “During the first year, we hope to attract financing of about 100 million lei from the budget and from foreign donors for this program,” said Octavian Calmac. Iulia Iabanji, director general of the Organization for the Development of the SME Sector that will manage the program, said that PARE 1+1 will last for 24 months and will have four components: information and communication; training and entrepreneurial support; business financing, and post-financing and assessment monitoring. “It is very important that the businesses set up within PARE 1+1 are durable. There will be created new workplaces so that the people do not go abroad to work. About 70% of the businesses will be started in rural areas. They will help improve the living conditions there,” Iulia Iabanji said, adding the Organization has received about 50 applications from potential participants in the program so far. One of them, Natalia Timotin from Ursoaia village, Causeni, said she opened a seamstress's office where they make uniforms for servicemen, police officers and other professional groups. “My husband is working temporarily in Moscow. If we receive 1 leu for every 1 leu invested, we will be able to gather some money and purchase new equipment,” she said. According to official statistics, there are about 350,000 Moldovans working abroad. The studies made by international organizations show the figure is much higher – approximately 800,000. The remittances sent to Moldova last year totaled US$1.2 billion, 60% of which came through banks.