Survey
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
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 Liberalization of current foreign exchange operations Companies are not obliged to sell there hard currency earnings to the Government – Transfer policies 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 – – – – – Company registration Opening accounts Hiring staff Finding facilities Establishing partnerships Operating the business – – – – – 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 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. 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