The World Bank's Board of Executive Directors today approved a US$45 million financing to the Republic of Moldova for the Second Competitiveness Enhancement Project,
which will contribute to increasing the export competitiveness of
Moldovan enterprises and decreasing the regulatory burden they face.
The
new operation supports the Government of Moldova's National Development
Strategy "Moldova 2020" goals of improving the business enabling
environment and promoting better access to finance for enterprises. To
achieve these priorities, the project will support the Government's
regulatory reform strategies, development of small- and
medium-enterprises (SME), and initiatives to improve access to medium-
and long-term finance for export-oriented companies.
Over
the past decade, exporting sectors have seen little dynamism, and in
the several years prior to the global financial crisis, they grew at a
pace slower than GDP. Exports have mostly remained concentrated in a few
traditional, low value-added industries, and there has been little
expansion of direct exports from Moldova to non-CIS countries.
The
Government's priorities in addressing these challenges are centered
around supporting export-oriented economic growth based on better
regulations, increased investment and the development of goods and
services-exporting industries. To fully reap the benefits of deeper
economic integration with its neighbors, Moldova needs to increase its
overall competitiveness.
In this context, the Second Competitiveness Enhancement Project will support three major areas:
- First, the Project will assist the Government to successfully implement its regulatory reform strategies. It will focus on increasing accountability and oversight of reforms that improve transparency and predictability, and reduce the cost of doing business. The Project will also assist the Government in implementing reforms that benefit export competitiveness, such as facilitating the issuance of licenses, permits, and authorizations, and improving competition.
- Second, the project will support SME development by strengthening SMEs' linkages to markets and providing matching grants to implement business improvement practices focused on export competitiveness.
- Third, the Project will provide medium- and long-term financing for working capital and investment purposes to export-oriented enterprises, and will promote improvements in other financing tools...
"Moldova
has a tremendous opportunity to boost export-led private sector growth
if it succeeds in strengthening its business enabling environment and
increasing competitiveness. We look forward to working with the
Government to help the country realize this opportunity, and ultimately
create more jobs and greater prosperity for all Moldovans," said Abdoulaye Seck, World Bank Country Manager for Moldova.
Since
Moldova joined the World Bank in 1992, over US$1 billion has been
allocated to 49 projects in the country. Currently, the World Bank
portfolio includes 8 active projects with a total commitment of US$189.9
million. Areas of support include regulatory reform and business
development, education, social assistance, e-governance, healthcare,
agriculture, environment, and others. The International Finance
Corporation has invested US$233 million in 24 projects in various
sectors, and the Multilateral Investment Guarantee Agency has provided
guarantees totaling US$95 million. Both institutions are members of the
World Bank Group.
