Participatory financing services to be accessible for Moldova's business environment

Chisinau, 18 January /MOLDPRES/ - The private sector of Moldova will be able to access alternative financing to the banking one through instruments of crowdfunding or participatory financing. A draft law to this end was approved at a today’s cabinet meeting. Thus, the process of financing the business will be democratized and entrepreneurs will be able to attract investments directly from citizens, through electronic platforms, the government’s communication and protocol department has reported.       

„Through the creation of the legal framework for crowdfunding, we will  be able to provide small entrepreneurs with alternative financing sources and the citizens – with new investment instruments.  Thus, we will boost the development of a growing sector in the West, which has been expected in Moldova for a long time. Nevertheless, the state will further provide support through the Organization for Entrepreneurship Development (ODA), which has lately come up with more new programmes,’’ Prime Minister said at the cabinet meeting.         

Under the document, the business activities will be carried out on electronic platforms and through safe means of identification, which will lead to avoiding the bureaucratic procedures and the payments and transactions of the participatory financing process will be made exclusively through bank transfer and payment instruments provided by the payment companies.

The participatory financing services have among their goals: promotion of the sustainable development of the small- and medium-sized enterprises (SMEs) through improving the legal and economic environment; ensuring and enhancement of the competitiveness and performances of SMEs; creation of an attractive investment environment for SMEs; development of the economy through the development of companies, which, for their part, pay higher taxes, create new jobs, which leads to the improvement of the residents’ living standards.     

The participatory financing or crowdfunding represents a way of democratization and extension of the access to capital, thus facilitating the investment community in the selection of the entrepreneurial sectors of the economy, which need capital funds and which, as a matter of fact, have limited access to the traditional financing sources.  

Photo: Government