The Parliament of the Republic of Moldova has approved, in its first reading, a bill aimed at aligning the legal framework governing small and medium-sized enterprises (SMEs) with the European Union acquis. The changes are expected to expand businesses’ access to support programmes and financial instruments, TRIBUNA reports.

Drafted by the Ministry of Economic Development and Digitalization, the bill seeks to harmonize SME classification criteria with European standards and introduce enhanced mechanisms to support export competitiveness and access to financing.

The proposed legislation would increase the annual turnover threshold for SME classification from €25 million to €50 million and raise the asset ceiling from €21.5 million to €43 million.

Applying the new financial thresholds and a methodology aligned with European standards could bring an additional 147 companies into the SME category, allowing more businesses to benefit from available support programmes and instruments.

The bill also proposes introducing a new legal category for small mid-cap enterprises, known as small mid-caps.

Currently, Moldova’s classification framework recognizes micro-enterprises, small enterprises, and medium-sized enterprises. Companies exceeding the applicable thresholds are automatically classified as large enterprises, with no intermediate category.

According to the rationale behind the proposed changes, this gap can limit incentives for businesses to expand their operations and make new investments, potentially affecting their growth and competitiveness.

Another key provision concerns the establishment of a dedicated mechanism to support export financing.

The mechanism would include instruments such as export credit guarantees and insurance, direct financing or refinancing of export credits, and interest rate support measures.

These measures are intended to diversify funding sources, reduce businesses’ exclusive reliance on bank lending, and strengthen alternative financing mechanisms.

The bill on aligning Moldova’s SME legislation with the EU acquis will be submitted to Parliament for consideration in its second reading.

SMEs represent the largest segment of Moldova’s economy, accounting for 99.7% of all enterprises and generating more than 72% of the country’s total turnover.