Transcript Program
Local and National Schemes to Start Businesses in the Republic of Moldova Alina Rotaru Consultant of the SMEs Development Policies and Trade Department, Ministry of Economy, Republic of Moldova Current Youth Programs “National Program Program for Economic “ Inclusive Rural Finance Empowerment and Capacity of Youth” “PARE 1+1” Program Development” Governamental Youth Program National Program for Economic Empowerment of Youth Approved by the Government Decision nr . 664 from 03.06.2008 Target Group The program is intended for youth aged 18-30 years, who: want to develop their entrepreneurial skills; want to launch a business in rural areas; want to develop their own existing business in rural areas. Program Goals and Objectives Development of entrepreneurial skills and attitudes among young people based on knowledge and optimum management of resources (financial, human, material, time, etc.); Facilitating the access of young entrepreneurs to financial resources necessary for initiation and development of own businesses; Stimulating young people to create and develop new businesses. Program Steps Component I Entrepreneurial training and consulting Component II Financing investment projects through commercial refundable loans with a grant part Component III Monitoring the postfunding Component I: Entrepreneurial training and consulting Objectives: Promotion of the Program Organization of entrepreneurial trainings for 10 days in different regions of the Republic of Moldova For participation in the Component I young people have to: be a citizen of the Republic of Moldova be a person who wants to develop a business in rural areas Achievements of Component I 700 600 500 400 300 200 100 0 2008 2009 2010 2011 2012 2013 2014 2015 Young people trained 262 413 384 656 577 691 662 398 Women 84 162 171 271 266 328 295 159 Enterpreneurs 84 113 89 132 73 72 104 81 Component II – Financing investment projects through commercial refundable loans with a grant component Financing the procurement of the equipments and production technologies for companies Financing the leasing contracts in order to ensure the rural entrepreneurial development General selection criteria Priority is given to: Beneficiaries whose projects contribute to increase the export and / or to substitute import; Beneficiaries whose projects contribute to the development of the rural production sector. • • There are not accepted the projects with the purpose of growth and tobacco trade, production of pesticides, land procurement, real estate and debt refunding. There are not accepted the projects which have a negative impact on environment. Conditions of lending The maximum credit amount is 300 000 lei; The credit is lend for a period: Minimum - 2 years and Maximum –5 years; The grace period is negotiated with the commercial banks and is different from case to case (2 - 6 months); Currently, the interest rate is 11.8% (but may increase depending on the inflation rate); The guarantee conditions are negotiated with the banks. Ex: The procured equipment can be purchased by commercial banks as guarantee for the credit assurance. Finance schedule of the program 40% 60% Repayable loan with comercial interest Non-refundable grant without interest Component III: Monitoring the postfunding The Component III is monitored by the Directorate of the Credit Line under the Ministry of Finance. The Directorate submits reports to Ministry of Finance concerning the use and payment of credits by the participants of the Program. Program achievements 2008-2014: 1639 loans offered for Young enterpreneurs 22% Start-ups 78% The program has created 2390 new workplaces Existing businesses “Inclusive Rural Finance and Capacity Development” Program Will be allocated a total amount of 12.1 million US dollars, out of which – 4.6 million US dollars is allocated by the Ministry of Foreign Affairs of Denmark Kingdom The program participation criteria The young entrepreneurs, citizens of Republic of Moldova, shall have the age between 18 and 35 years old The enterprises are registered in accordance with legislation in force of the Republic of Moldova It shall be commercially viable and shall demonstrate at the evaluation stage a positive impact on jobs creation and income generation. Comply with acts and standards concerning environmental protection and principles for environmental impact assessment. The impact can be achieved by creating new jobs within the company financed and enterprises that are independent by the funded enterprise. Activities eligible for funding 1. Production, harvesting, storage: fruits, berries, vegetables, medicine and aromatic plants, field crop and table grapes; 2. Production, harvesting and storage of seeds, seedlings and sorting, processing and packaging of agricultural products; 3. Livestock production, including the purchase of breeding animals, equipment and machinery used in the field; 4. Building warehouse and cold storage facilities for agricultural products; rural agro tourism and services for farmers Program’s conditions The max. amount of the loan 520 000 MDL (23 200 Euro) 40% non-refundable grant (max.120 000 MD Lei = 5400Euro ) 10% of the total project cost is a personal contribution of the candidate Loans Repayment period no more than 5 years “PARE 1+1” Program The program is intended for migrant workers and / or their immediate relatives who want to invest in launching and / or developing their own business in Republic of Moldova. Eligibility criteria be a citizen of the Republic of Moldova be a moldovan migrant worker or first degree relative – beneficiary of remittances intend to launch a business in Moldova or develop existing businesses have a capital coming from remittances Program Steps I II III IV • Information and communication • Training and entrepreneurial support • Business financing / Rule 1 + 1 • Monitoring and evaluation Program priorities Creating new jobs Export orientation Import substitution Business development in different areas of the country Application of modern technologies, transfer of know-how and innovations Program achievements (2011-2016) 151,8 mln Euroinvestments in economy 9,6 mln Euro – invested remittances 1336 new jobs 380 migrant people returned home Distribution of created new businesses by the activity domain agriculture production services public alimentation 3% 357 - created new businesses 22% 22% 53% Thank you for your attention!