European Commission to offer EUR 1.9 mln for development of small and medium enterprises in rural regions of Moldova

European Commission will offer about EUR 1.9 mln for the implementation in Moldova of the “Support for Small and Medium Enterprises in rural regions” project. The representative of the Delegation of the European Commission to Moldova, Paolo Berizzi, declared on Friday, September 29, at the official launching of the project that EC supports the democratic, social and economic development of the Republic of Moldova. “We signed with Moldova the EU-Moldova Action Plan, however we also support Moldova through programs and projects aiming at financially and consultatively aiding the country, including this one, through which we intend to give a quality impulse to small and medium enterprises in the rural zone”, the official added. Developing SME in the rural zone is an absolute priority of MEC, the minister of Economy and Commerce, Igor Dodon declared. According to him, 6 target-raions were selected – Rezina, Leova, Causeni, Glodeni, Edinet, Ungheni and UTA Gaguzia, where the project will be implemented. It will be a substantial support for the implementation of the Small and Medium Enterprises Development Strategy for 2006-2008. The project aims at supporting rural development in Moldova and implementing the Economic Growth and Poverty Reduction Strategy Paper (EGPRSP) by stimulating development of small and medium enterprises in the rural region and by strengthening their contribution in the Gross Domestic Product, trade and in creating workplaces. The project also aims at assisting the Government of the Republic of Moldova in creating political, institutional and regulatory frameworks in the field of SME, and facilitating launching new SME in the rural zone, strengthening concurrence of existent and potential enterprises. As well, the project includes strengthening institutional capacities of a new Organization for the development of EMS, improving business support services, direct technical assistance and instructing businessmen. The planned results of the project include elaboration and implementation of the package of fiscal and non-fiscal facilities in order to stimulate SME in the rural zone, adjusting political, legislative, institutional and regulatory reforms to the standards of the Unique European Market, drafting a complete business support package of services for SME. As well, as result of project’s implementation, at least 100 new SME are planned to be created and 140 SME with a better commercial situation and with a higher number of employees. The project was launched in July 2006. It will be finished on December 31, 2007 and is implemented by International Development Ireland in partnership with CEEN Consulting.