Municipal Bonds in the Republic of Moldova: Results Three Years After the First Issues
Automatically translated summary. The full article is available in Romanian.
On 16 July 2024, the Independent Think Tank “Expert-Grup”, with the support of the Embassy of the Kingdom of the Netherlands in Moldova, presented the results of the first three municipal bond issues, launched in Chișinău, Sîngera and Ceadîr-Lunga in 2021-2022, to local authorities, experts, banks and civil society.
The bonds financed trolleybus purchases in Chișinău, an aqueduct in Sîngera and road repairs in Ceadîr-Lunga. Deputy Head of the Dutch Embassy Maaike Keizer stressed that they strengthen local governance. Secretary of State Ion Gumene said that in 2025 income from capital gains or interest on municipal bonds and government securities (VMS) would be exempt from personal income tax, and that the Ministry of Finance would launch a direct VMS sales platform at the end of July.
Adrian Lupușor of Expert-Grup named seven key success factors: technical support, a reputable financial intermediary, an important project backed by councillors and the community, anchoring it in the strategic plan, consultation, debt below prudential limits, and a professional prospectus. Expert-Grup plans to extend the model to other municipalities in 2024-2025.
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