Landmark issuance of 7-year government bond for the first time in the history of the Republic of Moldova

On the 21st of April 2021, the Ministry of Finance succeeded to issue for the first time a 7-year government bond in the domestic market. The Ministry of Finance had received extensive support from the Project “Support the Moldovan Government in identifying and preparing projects linked to the implementation of the Association Agreement”, funded by the European Union, over a number of weeks leading up to this event.

The success is significant and against the odds of the unfolding COVID-19 crisis and other current difficulties. It is also a reflection of the Ministry’s commitment to continue developing the domestic market for government securities and extend the maturity profile of overall government debt denominated in MDL.

The success also marks the beginning of a renewed channel of communication between the Ministry of Finance and the Primary Dealer banks of Moldova, geared towards the common goal of developing the Moldovan capital market.

The PPF Project team is proud to have assisted the Ministry of Finance along the entire process, which is an essential element towards sustainable government financing as well as economic development. The PPF Project will continue to support the Ministry of Finance in this critical area.

The EU-funded Project “Support the Moldovan Government in identifying and preparing projects linked to the implementation of the Association Agreement” (PPF Project) was designed for a period of 5 years. Its main objective is to strengthen the capacity of the Moldovan national authorities to plan, prepare and manage public investment projects, both domestically and externally financed. Particular attention will be paid to capital projects that support the implementation of the EU-Moldova Association Agreement.