The state will partially compensate the interest rates on loans taken out by small and medium-sized enterprises for investment purposes. It goes to companies that raised loans in lei before August 1. These will be able to obtain a subsidy equal to two percentage points of the cost of interest, but not more than 300,000 lei. The subsidization mechanism and the online platform were presented in a news conference staged by the Organization for Entrepreneurship Development (OED) on Tuesday, IPN reports.

Minister of Economy Dumitru Alaiba told the news conference that together with the skyrocketing inflation caused by foreign factors and amplified by the war in Ukraine, the National Bank of Moldova had to raise the base rate. This led to higher interest rates on loans for entrepreneurs. “We are going through an uncertain, difficult period and these difficulties affect the economy, primarily the entrepreneurs. As the entrepreneurs raised loans without knowing what will follow, as no one knows, they now experience rising costs associated with bank loans. We realize this problem and consider the state should stand by the entrepreneurs,” stated the minister.

OED director Dumitru Pîntea said that the Government allocated 200 million lei for subsidizing the interest rates on investment loans. “These are loans classed by the creditor as standard or supervised loans. Subsidies will be provided for a period of five months, from this August until this December,” noted Dumitru Pîntea.

The mechanism covers practically all the sectors of the economy. “Those operating in agriculture, extractive industry, processing industry, electricity production and supply, gas supply, water distribution, accommodation activities, public food, communication technology, education and healthcare are among the areas for which subsidies can be asked,” said the OED director.

The entrepreneurs can apply for each month apart or at the end of the period, in January, for all the five months. They can submit applications online on the OED’s website where they will find a guidebook, the model certificate from the creditor and the subsidization regulations. Within ten days, the applicants be informed if they are eligible for subsidies or not.