Micro financing initiatives may bring new jobs in the Transnistrian region

18 Jun 2013

imageMicro financing initiatives would allow young businessmen from the region to start up or to extend a business and create new jobs. Photo: UNDP Moldova

The market survey of the microfinancing sector in the Transnistrian region was presented today within a round table organized by the UNDP-EU “Support to Confidence Building Measures” Programme. Besides the deep analysis of the situation in the financial area from the Transnistrian region, the study suggests also a financing mechanism which would allow young businessmen from the region to start up or to extend a business, to increase their incomes and to create new jobs.

The authors of the survey conclude that the limited access to finance represents one of main constraints for business development in the Transnistrian region. To overcome this situation, they recommend a micro financing mechanism, which would allow people accessing easier local banks’ credits, as well as the grants provided by the financing organizations. At the same time, the authors suggest a number of micro financing facilities for the young businessmen, including training courses and assistance for accessing bank loans. The recommendations formulated by the experts are also based on the experience acquired in the micro financing area on the right side of the River Nistru.

“The experience gathered by UNDP in other parts of the world shows that micro-financing initiatives help in creating new jobs – the main concern of the people living on the left side of the Nistru River. We hope that the pilot project proposed today will enjoy the necessary administrative support and will bring real benefits to all people from the region”, said Nicola Harrington-Buhay, UNDP Resident Representative in Moldova.

The market survey of the micro financing sector in the Transnistrian region was carried out by a team of experts of the "International Development Alternative" Company and the Research Centre "Novîi Vek", led by the international expert Hans Ramm within the UNDP-EU “Support to Confidence Building Measures” Programme.  

“The implementation of a micro-financing mechanism in the Transnistrian region is very timely, especially when the contribution of small and medium enterprises to the region’s economy accounts for only 10%. Hence, the European Union is ready to provide support for such initiatives”, said Wicher Slagter, Head of Political and Economic Section at the EU Delegation in the Republic of Moldova, during the round table.

The Joint UNDP-EU “Support to Confidence Building Measures” Programme contributes to promoting confidence building between both sides of the Nistru River by involving local authorities, civil society, business community, and other stakeholders in economic and social development of their local communities. The Programme is implemented by UNDP Moldova during 2012-2015. The total budget of the Programme accounts for 10,600,000 Euro, provided by the European Union (9,500,000 Euro) and UNDP (1,100,000 Euro).

Contact Information

Victor Draguţan, Manager, Business Development Component, “Support to Confidence Building Measures” Programme, victor.dragutan@undp.org, Tel: (+ 22 373) 839 872 or Natalia Costaş, Communication Consultant, natalia.costas@undp.org, Tel: (+ 373) 69221141

Download the Survey