What prevents to invest to foreign investors in Moldova the capitals?

In Moldova foreign investors are frightened by recoils, the policy and our desire fast to become the partner in business.

"Komsomolskaya Pravda" understood why with so active external help in the country still sharply there is an investment question: I will tell one real story, as the intermediary between the large foreign investor and the company in Ukraine was in a step becoming the dollar millionaire. Such percent relied for the transaction conclusion on development of shipbuilding. The negotiator looked after real estate abroad, chose prestigious foreign high school for children and … literally for any couple of days has lost the milliard (!) contract. The investor who wanted seriously and to come for a long time to Ukraine, some days before signing of key papers has sharply changed the opinion and has terminated the transaction. There was it when at neighbors "orange" revolution has burst. It is impossible for itself to present, what money has departured from Moldova, and without having got on our investment market, for the last couple of years when at us happens on April, 7th, election of the president for years lasted...

Crisis has forced to think globally

Yes, the government began to work actively in this direction: we were urged on also by the crisis which has happened two years ago, and a new wave which just about expect. We began to involve foreign partners, to win grants for infrastructure development. In the country advisers, experts … Nevertheless statistics were pulled is relentless: with enough active external help in this year quantity wishing to invest to Moldova has considerably decreased. According to National bureau of statistics, during the period from January till March our economy has involved more than 70 million dollars of long-term investments that on 50 million dollars it is less, than for the last quarter of last year. In relation to the investment first quarter 2011 were reduced more than on 15 million dollars. Investments of the companies with the private capital were reduced almost to 20 percent, and joint ventures with participation of the Moldavian and foreign capital have reduced the investments by 15 percent.

Why investment streams have stopped?

 How sceptics loud scandals with the Moldavian banks Moldova Agroindbank, Universalbank, Banca de Economii and Victorabank, burst in last year, – raider  attacks or repartition of business and influence spheres, any similar history named, in which foreign investors participate (and in all those cases they were), at once reduces appeal of our country to potential investors. After all before to come on our market, they request of specialized firms the scrupulous analysis of an investment climate in the country, and inquire – favorably or not to build in Moldova business

FIGURE: 236 projects for a total sum in 1 billion 348 million euro are realized in Moldova. Half of means has been received in the form of grants, and other half – in the form of soft loans.

OPINION OF THE EXPERT

What prevents to invest to foreign investors in Moldova the capitals?

Aliona Mednic, Director International Business Company Welcome.md, the companies which principal view of activity is attraction of foreign investments into Moldova:

- Today in attraction of foreign investments projects most of all need manufacture sphere. Plus for the investor that possible risks here is much less as the state encourages this sort of projects. However there is also an essential minus: the matter is that time of reception of the first profit considerably increases. As a whole, in my opinion, Moldova needs new mechanisms of attraction of direct foreign investments and substantial improvement of an investment climate in the country.

- And why? After all and so the abroad helps us...

- And has put all in our validity. Events of modern political and economic processes negatively influence an investment climate and, in particular, on the international investment appeal of Moldova, raise risks for investors, predetermining thereby losses in competitive struggle for world investment resources.

 - In spite of the fact that the president at us is already selected, what all the same today frightens new investors when they hear about Moldova?

- For today such system threats for investors, as still remain: political and economic instability, unstable and unpredictable legal field, defects in system of the state jurisprudence (in particular, in sphere of protection of the rights of owners and menacing cases of corporate raid), high level of corruption.

- In your opinion, how it is possible to raise investment appeal of Moldova?

- First, it is necessary to improve the legislation, to raise a management transparency, legal and economic institutes, to provide corresponding guarantees for investors from the state, and also protection of the property rights and observance of rules of a competition by all participants of the market. To encourage development of the human capital, rendering of priority support for financing of the small and average enterprises, especially in countryside, and also escalating of potential of the organizations helping development of business. To raise appeal of Moldova and improve an investment climate can only purposeful work in this direction, and an important role in it the country government should play.

THE COMMENT OF THE ECONOMIST

Victor Moroz, the doctor of economy (Institute of economy, the finance and statistics):

- Now to us, and everything, stirs a global economic crisis which promises to be aggravated even more. If people cease to invest in the countries, it is difficult to wait that they will take out the capitals and begin to invest somewhere. Their investment market is no saturated, therefore they and don't take out capitals for limits of the countries.

- Meanwhile, there is an opinion what exactly in crisis strong brands are born and the economic deal … can cardinally exchange

- It agree with you, but it occurs there where the soil is fertilized and prepared. On an infrastructure Moldova is somewhere near to Zimbabwe. We should think of possibilities of own development. The power has released reins – at us now so: do that you want. Yes, there is an economic growth, but it is always accompanied by corruption. Loook at least on its scope in South Korea – the country which since 1953 in 100 times has increased gross national product per capital – has simply wallowed in recoils and corruption schemes. And at us it is. In Moldova it especially brightly is appreciable against poverty of the population.

- Any official visit to Moldova or our politicians abroad is necessarily accompanied by the block about economic bilateral cooperation. So why the investment problem to Moldova costs so sharply?

- Investments into Moldova go, but is moderate. There is a population training, preparation of experts abroad. We adopt technologies in service building, sphere of telecommunications. But Moldova could make much in sphere of the agrofood market. However those countries which could help us with it, are in a distress. On the other hand, look at Turkey as there have managed to adjust manufacture. I  have spoke  with many gagauz, which went to adopt their experience, they from trips remained in indescribable delight. And here there is an idea: and can, to our departments not to go in cycles in Moscow, Bruxelles, Beijing. There are also other countries to which it is possible to pay attention: the same Turkey, for example. It is necessary to work actively in all directions.

- In your opinion, than foreign investors who have already developed the business in our country are dissatisfied?

- According to with whom I communicated, it is possible to allocate some key problems. The first. Foreign investors aren't so happy with that in Moldova all aspire to be attached in partners. They are perplexed: as it is possible to become the partner if such enterprises are created after many years of work and trust to each other. The second problem consists in complexity of work outside of Kishinev. At us life boils in capital, however it is necessary to drive off, as it is impossible to find shots, it is not enough experts of technical specialties. One more moment – strangely enough, stirs a language barrier to work. But here not so much our fault, at us people at least bilinguals, but those who comes, don't know language. The third, of course, not the most important reason … But and as a whole I had a proof sensation of that investors have dealt with the problems that is why to begin something new at us in Moldova it now not with a hand.

The author: Darya Zimbelsky (the deputy the editor on Internet KP.MD)

Source: https://www.kp.md/daily/25947/2890839/