These are the main objectives of the National Strategy of Capital Market Development of Moldova for 2025-2030, approved this week by the government. The implementation of the document is meant to solve structural problems and implement reforms to reach EU standards.
The explanatory note to the Strategy stresses that the capital market in Moldova faces a number of structural problems characterized by the lack of viable mechanisms for financing the economy. “In particular, weak capital market infrastructure, low participation of companies and investors, lack of investment funds and voluntary pension funds affect the liquidity and integrity of the market, as well as the behavior of economic agents when choosing the option of financing through own funds or traditional bank lending. In such a model, where the financial system does not create a bridge to capital markets, the supply and demand for capital often remain incomparable due to the cost and risks of financing,” the explanatory note states.
The Strategy itself contains a detailed analysis of the current situation in the capital market and its potential. The strategic goal of the document is to give impetus to the development of the market and its harmonious integration into the country’s economic system.
The strategy contains five main objectives: increasing companies’ access to long-term financing through the use of capital market instruments; expanding the base of active investors by facilitating access and increasing the attractiveness of various investment instruments; modernizing the capital market infrastructure; developing new instruments; and harmonizing national legislation in this area in accordance with the EU accession process.
Each objective contains specific tasks and priority areas. For example, it is planned to increase SMEs’ access to financial instruments on the capital market, simplify supervision and monitoring of companies that are not state-owned, and reduce the number of dormant companies and accounts. It is planned to develop digital instruments, identify digital solutions to improve the efficiency and quality of financial services, develop a regulatory framework for the regulation of digital finance (cryptocurrencies), promote the financing of local authorities through municipal and project bonds, ensure free circulation of financial services and capital, etc.
One of the outcomes of the implementation of the strategy for the public sector should be “the development of the bond market, which will allow the government to finance the deficit and reduce dependence on external borrowing, thus ensuring greater autonomy in the formation of fiscal policy”.
