Economics

ECONOMY MINISTRY PROPOSES TO EXTEND PARE 1+1 PROGRAM FOR THREE YEARS

16 octomber, 2018

The Ministry of Economy and Infrastructure proposes to extend till 2021 the Program on Attracting Remittances into the Economy PARE 1+1, the term of which expires at the end of October.

The draft law, developed by the Minister, explains the need of this, citing the successes of the program, implemented since 2010, and saying that the extension will allow to get additional financing for opening or extending one's own business for 500 more Moldovan entrepreneurs.

According to 2019-2021 mid-term budget frames and the Strategy of branch expenditures for private sector development, it is planned to allocate 40 million lei annually for financing the PARE 1+1 in 2019-2021. Besides, 49 million lei more may be attracted from the Project on Supporting Small and Medium Enterprises in Rural Area, financed by the European Union Delegation in Moldova (2.5 million euros).

For improving the program, the Economy Ministry proposes to reduce the number of the demanded documents to 6 from 8, as well as to cancel the mandatory presentation of certificate about the benefiting enterprise's profit over the last three years. Besides, for efficient administration of the received funds, it is proposed to introduce a category of "unacceptable costs/goods", which are not subjected to financing within the program.

One more change says that a company may participate in the program only once.

The consultations on the project will last until October 18.

Infotag's dossier: The PARE 1+1 Program was launched in 2010 for a period of 5 years, while then the Government extended it till 2018. It is designed for migrant workers and/or their relatives of first degree of consanguinity, who want to invest and/or start their own business. It implies the providing of money for opening or developing personal business in the home country. Initially, the Government promised 1 leu per each leu invested by the beneficiary, but not more than 200 thousand lei.

Over the time of program functioning, more than 1300 enterprises benefited from this help. They received grants worth over 242 million lei and their investment in economy accounted for 768 million lei. Thus, the Government allocated 1 leu per each 3.2 lei invested by beneficiaries.

The program contributed to opening of 538 new enterprises, mostly in rural area and the creation of 3200 new jobs. The program participants opened new types of activity, such as the growing of almonds, breeding ostriches and snails. The age of 48% of entrepreneurs is under 35 and around 30% of them are women.

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