Transcript Folie 1

Supporting investment opportunities
to Moldova
Sorin Andrei
CEO BCR Chisinau SA
How Moldovan economy performs?
GDP trends
10.0%
8.0%
7.4%
7.5%
7.2%
6.0%
4.0%
4.0%
IMF prognosis
3.0%
2.50%
2.0%
0.0%
2004
2005
2006
2007
2008
2009
2010
-2.0%
-4.0%
-6.0%
-8.0%
-6.5%
GDP growth (%)
– Continuous GDP
growth in 2004-2008
– GDP decline in 2009
as result of financial
crisis
– GDP recovery
forecasted by IMF for
2010
FDI trends
USD Mio
800
14.00%
700
12.00%
600
10.00%
500
8.00%
400
6.00%
300
4.00%
200
2.00%
100
0
0.00%
2004
2005
2006
2007
2008
2009
FDI, mil USD
FDI/GDP, %
– Growing interest of
foreign investors to
Moldova
– Growing impact of
foreign investment to
domestic economy
FDI structure by sector
Electricity, gas
and water supply
Food processing
3.90%
4.80%
5.30%
26.60%
14.50%
Wholesale, retail
& repair services
Financial
activities
18.80%
26.10%
Transportation
and
communications
Real estate
transactions
-Energy sector and food
processing are the leaders
in attracting FDI
- Services such as trade,
finance and transportation
are the new drivers of FDI
growth
-Real estate transactions
have potential to grow with
the economic recovery
FDI structure by country of origin
Romania ,
49
Germany ,
36.6
Russia
Russia, 179
France, 62
Spain
United States
Netherlands
Netherlands,
62
Franta
Spain , 88
United
States , 80
mill.USD
Germany
Romania
– Foreign investors
come from different
countries
– The majority of
investment to
Moldova comes from
OECD countries
Monthly inflation rate evolution
1.5%
1.0%
0.5%
0.0%
-0.5%
-1.0%
-1.5%
– Monthly inflation rate
less than 0.5% last 12
months
– Inflation target less
than 10% forecasted
for 2010
1/1/2010
7/1/2010
13/01/2010
19/01/2010
25/01/2010
31/01/2010
6/2/2010
12/2/2010
18/02/2010
24/02/2010
2/3/2010
8/3/2010
14/03/2010
20/03/2010
26/03/2010
1/4/2010
7/4/2010
13/04/2010
19/04/2010
25/04/2010
1/5/2010
7/5/2010
13/05/2010
Exchange rate evolution
20
18
16
14
12
10
8
Eur
USD
6
4
2
0
– Stable exchange rate
MDL/ USD
– 12.5 MDL/USD
forecasted for 2010
– MDL/EUR exchange
rate is influenced by
USD/EUR fluctuations
Banking system evolution
– There are 15 banks
acting in Moldova
– The total assets are
arround 3.1 billion
USD
– The evolution of the
bank assets follow
total economic trend
Why to invest in Moldova?
Moldovan market opportunities
– Processing opportunities:
 fruits, vegetables, grapes, cereals, meat, eggs
– Export opportunities:
 free trade agreements with CIS countries, trade
facilitations to EU
– Services development:
 transports, telecoms, IT, construction services, trade
services
– Infrastructure development:
 Roads network, public utilities, industrial facilities
Currency and transfer policies
– Currency conversion
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Liberalization of current
foreign exchange operations
Companies are not obliged to
sell there hard currency
earnings to the Government
– Transfer policies
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After tax payments foreign
investors are allowed to
repatriate residual funds
Transfer of residual funds is
not subject to additional
taxation or special
permission requirements
FDI incentives
– Taxation
 Imports used to manufacture goods bound for export are
exempted from customs duties
 0% income tax rate on re-invested corporate profits
 Full income tax exemptions may also be enjoyed by small
businesses (3 years), software developers (5 years),
agribusiness (5 years), and scientific research and innovations
(unspecified)
 No formal requirements exist for investors to purchase from local
sources or to export a certain percentage of their output
 Moldovan exports are exempt from value added tax
FDI incentives
– Foreign trade zones
 Export-oriented production is the main goal of such zones
 FEZ commercial residents are allowed to sell up to 30 % of their
products in Moldova
 25 % exemption from income tax;
 50 % exemption from tax on income from exports;
 for investments higher than USD 1 million 3 years exemption
from tax on income resulting from exports;
 for investments higher than USD 5 million five-years exemption
 from tax on income from exports; zero value-added tax;
 10 years guaranteed legal framework
Which are the main challenges when
entering the market?
Country risk level
(according to Coface)
– Strengths
 A small open economy
attracting foreign investors
 Desinflationary
environnement
 Support of the
international financial
community
 Strengthening relationship
with the European Union.
– Weaknesses
 Heavy dependence on
remittances from migrant
workers
 Unstable political situation
and social unrest
 Increasing unemployment
and impoverishment of
rural areas
 Underdeveloped banking
facilities
Starting the business
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Company registration
Opening accounts
Hiring staff
Finding facilities
Establishing partnerships
Operating the business
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Receiving licenses and other legal permits
Making financial transactions
Financial reporting system
Dealing with public authorities
Solving claims and disputes
How BCR Chisinau supports your
investment projects?
BCR Chisinau as a financial partner
Proven track record on Moldovan market
Member of well known international group
100% foreign capital
Special international client desk
BCR member of Erste Group
Chisinau
Our home market with over 17.3 million clients in CEE/SEE
Information support when entering
the market
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How to establish a business
How to open an account
Relevant information on local economy
Relevant business information
Supporting ongoing business
activities
 Optimization of FX transaction costs
 Trade financing instruments for international
transactions
 Ensuring performance in trade/ other
financing arrangements
 Ensuring adequate financial support
BCR Chisinau S.A.
BCR Chisinau S.A. offers a
vast array of products and
services to the corporate
clients.
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Current accounts and attached services
Investment instruments
Financing solutions
Cards and related services
Derivate financial instruments
Letters of credit/comfort/guarantees
Commercial papers endorsement
BCR Chisinau
international client support
We are here to offer the best solutions for
your business needs and perspectives