Investment Funds – A Basic Precondition for Accelerating Economic Growth
Automatically translated summary. The full text is available in Romanian.
The Independent Think Tank “Expert-Grup” argues that the EU’s EUR 1.9 billion Growth Plan for Moldova can catalyse the national economy only if the resources are managed professionally. It says developing the capital market and investment funds is essential to turn idle bank liquidity into productive private investment.
Moldova combines one of the region’s highest levels of banking liquidity with one of its lowest levels of financial intermediation; in 2024 bank loans were only 47% of banking sector assets. No investment fund or authorised fund manager is currently active, after the funds of the 1990s privatisation collapsed. Favourable conditions now exist: Law No. 171/2012, Law No. 2/2020 on alternative collective investment undertakings, a growing base of private investors, development partners’ resources and businesses’ demand for financing.
The article proposes ten measures. They include integrating the national capital market into the EU’s, educating entrepreneurs and the public financially, and offering an attractive tax and currency regime. They also include extending support programmes to firms financed through the capital market, turning FACEM into a fund of funds, channelling Growth Plan resources through investment funds, using the capital market for privatisation, adopting a capital market strategy and ensuring good governance.
Recent publications from Economic growth policies
See all
The socio-economic encyclopedia of Moldova, first edition
Moldova must launch a broad fiscal consolidation reform to bring the budget deficit within manageable limits
Monitoring Report on the Implementation of the State Property Management Strategy for State-Owned Enterprises and Companies with Fully or Majority State Capital
