European Investment Bank financing exceeded 849 million EUR in the Republic of Moldova
The European Union strives to promote sustainable development and well-being of Moldovan citizens. Since 2008, the European Investment Bank (EIB) plays an essential role in supporting the Moldovan economy to align it to the EU living standards.
The European Investment Bank provided long-term financing for the key sectors, having supported the small and medium- sized enterprises, agricultural education and research, as well as allocating funds to upgrade the road network, diversify the sources of energy, supplying drinking water and sanitation. The overall financing amount reached 849 million EUR.
As an EU bank, the European Investment Bank provides funds to infrastructure projects, which improve the connection between the Republic of Moldova and the EU, and this fact offers new commercial opportunities and encourages foreign direct investments in the country.
The Transport Sector holds the largest share of funding, circa 40%. The EIB supported the rehabilitation of some sections of national roads, the Chisinau Airport lane, and the extension of terminals. At the same time, funding was made available to buy 90 new trolleybuses.
Likewise, special attention was paid to the Energy Sector, as it received 18% of financing. The European Union helped the Republic of Moldova diversify its
energy sources by having supported the construction of the Ungheni-Chisinau gas pipeline with the length of 120 km and a new power line of 400 kV Vulcanesti-Chisinau.
Horticulture and Viticulture Projects
Through the European Investment Bank, the European Union provides support to Moldovan farmers aimed at developing rural business and increasing their competitiveness. Since 2016 and up until now, loans worth 51 million EUR have been allocated under the “Fruit Garden of Moldova” credit line to develop and restructure the whole horticulture value chain and support the small and medium- sized enterprises.
At the same time, following the funding allocated for the wine sector restructuring programme Filière du Vin, the exports of bottled wine towards the EU members states and other markets have grown significantly. The overall volume of exported bottled wine increased from 35 million litres in 2015 to 46 million litres in 2019, while the value of exports grew up from 1220 million MDL to 1774 million MDL.
The increased exports are attributed to the implementation of the Free Trade Agreement, which goal is to gradually eliminate the customs duties on imports and exports. Furthermore, as of 2014, the EIB, being in the position of the EU bank, was one of the core actors that supported the Association Agreement between the Republic of Moldova and the European Union, as well as the Deep and Comprehensive Free Trade Area (DCEFTA).
Nowadays, about 70% of Moldovan exports are channelled toward the EU, while the imports amount to almost 50%.
Hence, the European Union is the top Trade Partner of the Republic of Moldova and the top Investor.