The Government has approved the amendment of the Regional State Aid Scheme for investments made in the Republic of Moldova. The project increases the scheme’s budget from 2 billion to 4 billion lei, due to a significant rise in demand from the business sector and financial support from European partners, TRIBUNA reports.

Out of this amount, 1 billion lei will be allocated as non-reimbursable grants, while 3 billion lei will be offered as 50% income tax reductions, applicable to revenues generated from investments made under this mechanism. A maximum cap of 20 million lei per grant awarded to a single enterprise is also introduced.

“We’ve launched a process to encourage investment. We must ensure fairness, focus on areas with higher added value, and expand opportunities for a broader range of companies. That is the essence of these changes,” said Prime Minister Dorin Recean.

To ensure efficient and equitable use of public resources, the evaluation process for applications will be strengthened. The Ministry of Economic Development and Digitalization will develop a methodology for assessing project eligibility, aimed at selecting investment projects with long-term economic impact.

Since the scheme’s launch earlier this year, eight enterprises have already benefited from support.