Moldovan Prime Minister announced launch of 373 investment encouragement program

Chisinau, May 2. /MOLDPRES/- Prime Minister Dorin Recean announced today the launch of 373 investment encouragement program, through which entrepreneurs who want to invest in their businesses will be able to benefit from interest compensation on loans. It will be available from 1 June.

The program is announced as a measure that will facilitate access to financing and help the business environment to develop and create new jobs. The 373 program was created specifically to give SMEs quick and easy access to finance so they can invest in developing their businesses and expanding.

"I announce the launch of Program 373. This is a number known as a country code. The figure 3 comes from the 3 percent interest rate on foreign currency loans. Number 7 comes from the interest rate on loans in lei. The last digit of 3 comes from the maximum grace period for a loan with a maturity of up to 7 years. The difference between the market interest rate and this ceiling of either 3 percent in foreign currency or 7 percent in lei - will be subsidized by the Government. For example, today the commercial interest rate for loans of up to five years is about 13 percent. Here is the difference between the 13 percent that exists today and the 7 percent - this ceiling in the program - will be subsidized by the Government.

Another example regarding the interest rate on loans in euros or dollars. Today the average rate is 5.5 and the Government will subsidize the difference between 5.5 and 3 percent. How does the program work? I want to make an investment and I need financial resources. I submit the file, I can receive a loan with a maturity of up to 7 years with a grace period of up to 3 years. I will pay a maximum interest rate in lei of 7 percent or in foreign currency of 3 percent, and the difference between the interest on the market and these 3 or 7 percent will be covered by the Government from the FACEM fund", the prime minister said.

Under the program, entrepreneurs who have an investment initiative will be able to benefit from interest subsidies for loans of up to 15 million lei or the equivalent in foreign currency, granted for a period of seven years.

Recean noted that the new Program could benefit between 400 and several thousand entrepreneurs who want to invest in their businesses. "Loans are offered for investments, not for working capital. We aim to increase the lending portfolio of enterprises by about 1.5 billion lei. That would mean the Government's contribution under 200 million lei. This effort will be able to contribute 1 percent to the economic growth of the GDP", he said.

During this week, the decision to operationalize the Program will be promoted in the Government, and later the Ministry of Economic Development and Digitalization and the Organization for the Development of Entrepreneurship will conclude the necessary contracts with commercial banks.