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Press Release

Thursday, October 14, 2010

OPIC Concludes Agreement Promoting Investment in Moldova

WASHINGTON, D.C. – Mimi Alemayehou, Executive Vice President of the Overseas Private Investment Corporation (OPIC), signed a memorandum of understanding (MOU) between OPIC and the Moldovan Investment and Export Promotion Organization (MIEPO) outlining a collaborative effort to mobilize U.S. private sector investment in Moldova. 

OPIC Executive Vice President Mimi Alemayehou, right, and Moldovan Minister of Finance Veaceslav Negruta at signing of MOU.

The MOU expresses a commitment by MIEPO, a Moldovan government agency under the Ministry of the Economy, to provide potential U.S. investors in Moldova with information about OPIC programs; and by OPIC to train MIEPO staff members about its products and services. The MOU also commits both agencies to identify Moldovan organizations which could serve in the Enterprise Development Network, an alliance among financial institutions, business consultants, associations, law firms and regional investment promotion agencies that is designed to expand OPIC’s ability to support small businesses working in developing countries.

Veaceslav Negruta, Moldova’s Minister of Finance, represented the Moldovan government at the signing.

Ms. Alemayehou noted that Moldova concluded a $262 million investment compact with the Millennium Challenge Corporation in January, signaling the country’s desire to further develop its market economy.

“Today’s MOU sends a positive signal to U.S. investors that Moldova is emerging as a market that can generate profitable returns on investment,’ said Ms. Alemayehou. “Through this cooperative arrangement, OPIC looks forward to working with MIEPO to accelerate U.S. investment in Moldova even further.” 

The Economist Intelligence Unit (EIU) reported in July that “Moldova's economy made a robust return to growth in the first quarter of the year, with private consumption reviving on increased remittance flows and export-demand giving a spur to industrial output.” The EIU forecasts a recovery to real GDP growth of 4.5 percent in 2010, but notes a demand for fixed investment, which has dropped markedly in the past year.

Over the course of its history, OPIC has provided $34 million in financing and political risk insurance to ten projects in Moldova, in sectors ranging from manufacturing and financial services to agriculture and energy.
 


OPIC is the U.S. Government’s development finance institution.  It mobilizes private capital to help solve critical development challenges and in doing so, advances U.S. foreign policy.  Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets catalyzing revenues, jobs and growth opportunities both at home and abroad.  OPIC achieves its mission by providing investors with financing, guarantees, political risk insurance, and support for private equity investment funds.

 

Established as an agency of the U.S. Government in 1971, OPIC operates on a self-sustaining basis at no net cost to American taxpayers. OPIC services are available for new and expanding business enterprises in more than 150 countries worldwide. To date, OPIC has supported nearly $200 billion of investment in over 4,000 projects, generated $74 billion in U.S. exports and supported more than 275,000 American jobs.