The Cabinet approved today Program for drawing remittances in economy PARE 1+2, a program set up by the Ministry of Economy jointly with the Organization for Entrepreneurship Development (ODA). The program aims to strengthen the economic opportunities for turning to good account remittances, as well as to facilitate the inclusion of migrants in the social-economic development of the Republic of Moldova.
The PARE 1+2 program was worked out as a result of the evaluation of the previous program for attracting remittances in the economy PARE 1+1, which proved to be an effective government tool for business development and directly contributes to the achievement of the social and economic policy goal.
The new program in the 1+2 formula comes as a complement to the PARE 1+1 Program and provides additional financial support for the growth of businesses created by migrants.
Beneficiaries of the Program will be able to get financial support in two stages:
– In the first stage, non-refundable financing will be offered under 1+1 Rule that is each leu invested from remittances will be supplemented with one leu from the program, and the maximum amount of the grant will not exceed 250,000 MDL;
– In the second stage, non-refundable financial support for growing businesses will be offered under 1+2 Rule and will be meant for beneficiaries who have successfully implemented the investment project from the first stage (including PARE 1+1 Program graduates) and intend to expand economic activity by increasing production capacity, diversifying products, expanding to new markets etc.
Non-refundable financing under the 1+2 Rule will be offered of up to 500,000 MDL for investment projects, aimed to expand the company’s activity.
The Program’s improvement will contribute significantly to the amplification of the impact in the economy, by developing the businesses created by migrants, increasing investments in the economy, increasing the competitiveness of small and medium enterprises in Moldova, as well as increasing the quality of the products and services.
The program’s implementation period is 36 months, with the possibility of being extended based on additional financial means available.
The implementation of the Program requires an estimated budget of 30,000,000 MDL annually. The program’s total budget for three-year implementation period is on average 90,000,000 MDL, with the possibility of being expanded with the support of local and external donors.