Moldova to launch new 'fund of funds' for business growth
Moldova’s government has approved a new financial instrument—a “fund of funds”—to support business development.
The initiative, managed by the Organisation for the Development of Entrepreneurship (ODA), was approved during a cabinet meeting on Wednesday, 24 September.
Doina Nistor, Deputy Prime Minister and Minister for Economic Development and Digitalisation, said the new mechanism, which has been used successfully in countries such as Poland, Estonia and France, will attract private and institutional capital for local investment.
“Small and medium-sized enterprises will gain real access to long-term funding, smart capital, and strategic partnerships for their development,” she said. “The ultimate beneficiaries are Moldovan entrepreneurs who create jobs, export goods and add value to the national economy. This is a truly visionary step that will strengthen Moldova's competitiveness and bring us closer to the economic standards of the European Union.”
According to the project’s explanatory note, ODA aims to quickly expand financial instruments for businesses. This includes financial guarantees through the Credit Guarantee Fund (FGC), offering preferential-cost financing, partial or full interest rate compensation, and other forms of support via the Moldovan Entrepreneurship and Economic Growth Fund (FACEM).
The new fund will also use a mechanism known as a “first-loss tranche” which is designed to attract private and institutional investors by reducing investment risk.
“We plan to generate a multiplier effect: every public leu will attract at least three lei of private capital,” she said. “The identified budget is around 200 million lei over the next two years. For tech start-ups, one public leu will attract one private leu.”
A total of 140 million lei will be allocated from the state budget in 2026. Of this, 60 million will go to two investment partners (local, regional or international) who will invest in high-growth firms, and 20 million will be allocated to a partner who will invest in technology start-ups. An additional 60 million lei is expected to be invested the following year.
Translation by Iurie Tataru
