OPIC Concludes Agreement Promoting Investment in Moldova
October 14, 2010
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.