List of countries with which Moldova has signed agreements to promote and protect mutual investments

Date and place of signature

Nr.

State Name

Entry into force

European Union countries

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. Austria Belgo-Luxembourg Economic Union Bulgaria Cyprus Estonia Finland France Germany Greece Italy Latvia Lithuania United Kingdom Netherlands Poland Czech Republic Romania Slovakia Slovenia Spain Hungary 05.06.2001 Chisinau 21.05.1996 Chisinau 17.04.1996 Sofia 13.09.2007 Chisinau 18.06.2010 Tallinn 25.08.1995 Helsinki 08.09.1997 Paris 28.02.1994 Chisinau 23.03.1998 Atena 19.09.1997 Roma 22.09.1999 Riga 20.09.1999 Vilnus 19.03.1996 Londra 26.09.1995 Chisinau 15.11.1994 Varovia 12.05.1999 Praga 14.08.1992 Bucureti 07.04.2008 Chisinau 10.04.2003 Ljubljana 11.05.2006 Chisinau 19.04.1995 Budapesta 01.08.2002 20.04.2002 12.06.1997 27.03.2008 21.04.2011 21.06.1997 03.11.1999 15.06.2006 27.02.2000 26.08.2001 14.04.2000 29.05.2003 30.07.1998 01.05.1997 27.07. 1995 21.06.2000 15.06.1997 15.11.2009 01.06.2004 17.01.2007 16.08.1996

Community of Independent States countries

22. 23. 24. 25. Russia Azerbaijan Belarus Kyrgyzstan 17.03.1998 Moscova 27.11.1997 Baku 29.05.1999 Chisinau 07.11.2002 Bikek 18.07.2001 28.01.1999 19.11.1999 16.01.2004

26. 27. 28.

Tajikistan Uzbekistan Ukraine

05.11.2002 Duanbe 21.11.1995 Takent 29.08.1995 Chisinau

20.10.2003 17.01.1997 20.05.1996

Other countries
29. 30. 31. 32. 33. 34. 35. 36. 37. 38. Albania United States of America Turkey Bosnia and Herzegovina China Kuwait Croatia Switzerland Israel Georgia 11.06.2004 Chisinau 19.06.1992 Washington 14.02.1994 Ankara 09.04.2003 Belgrad 06.11.1992 Beijing 29.03.2002 Chisinau 05.12.2001 Chisinau 30.11.1995 Chisinau 22.06.1997 Ierusalem 28.11.1997 Tbilisi 23.12.2004 02.12.1992 16.05.1997 09.06.2008 01.03.1995 06.04.2004 20.03.2007 29.11.1996 16.03.1999 25.02.1999

List of countries with which Moldova has signed double taxation avoidance agreements
Date and place of signature 06.12.2002 Porto 06.10.2002 Chisinau 29.04.2004 Viena 27.11.1997 Baku 23.12.1994 Chisinau 17.12.1987 Bruxelles 08.12.2003 Saraevo 15.09.1998 Sofia 04.07.2002 Chisinau 12.05.1999 Praga 14.10.2004 Praga 07.06.2000 Beijing 28.01.2008 Nicosia 30.05.2005 Chisinau 29.03.2004 Chisinau 13.01.1999 Berna 23.02.1998 Tallin 16.04.2008 Helsinki 24.11.1981 Bonn 28.05.2009 Chisinau 23.11.2006 Tel Aviv 18.01.1986 Tokio 15.07.1999 Astana 17.04.2004 Bikek 25.02.1998 Riga 18.02.1998 Minsk

Nr. 1 2 3 4 5 6 7 8 9

State Name Albania Armenia Austria Azerbaijan Belarus Belgium Bosnia and Herzegovina Bulgaria Canada Czech Republic

Entry into force 06.06.2003 20.06.2005 01.01.2005 28.01.1999 28.05.1996 21.05.1996 17.12.2004 25.03.1999 13.12.2002 26.04.2000 13.07.2005 26.05.2001 03.09.2008 10.05.2006 11.07.2005 22.08.2000 21.07.1998 09.11.2008 11.10.1995 22.04.2010 12.04.2007 23.06.1998 25.02.2002 16.05.2006 24.06.1998 07.09.1998

Date of application 01.01.2004 01.01.2006 01.01.2006 01.01.2000 01.01.1997 01.01.1997 01.01.2005 01.01.2000 01.01.2003 01.01.2001 01.01.2006 01.01.2002 01.01.2009 01.01.2007 01.01.2006 01.01.2001 01.01.1999 01.01.2009 01.01.1996 01.01.2011 01.01.2008 01.01.1999 01.01.2003 01.01.2007 01.01.1999 01.01.1999

10

- Convention - Protocol

11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

China Cyprus Croatia Greece Switzerland Estonia Finland Germany Ireland Israel Japan Kazakhstan Kyrgyzstan Latvia Lithania

26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44

Luxembourg Macedonia United Kingdom Montenegro Oman Poland Portugal Romania Russia Serbia Slovakia Slovenia Spain Tajikistan Turkey Netherlands Ukraine Hungary Uzbekistan

11.07.2007 Chisinau 21.02.2006 Skopje 08.11.2007 Londra 09.06.2005 Chisinau 03.04.2007 Muscat 15.11.1994 Varovia 11.12.2009 Lisabona 21.02.1995 Chisinau 12.04.1996 Moscova 09.06.2005 Chisinau 25.11.2003 Chisinu 31.05.2006 Ljubljana 08.10.2007 Chisinau 15.11.2002 Dusanbe 25.06.1998 Chiinau 03.07.2000 Chisinau 29.08.1995 Chisinau 19.04.1995 Budapesta 30.03.1995 Chisinau

04.12.2009 28.12.2006 30.11.2008 23.05.2006 13.08.2007 27.10.1995 18.10.2010 10.04.1996 06.06.1997 23.05.2006 17.09.2006 14.11.2006 30.03.2009 25.02.2004 28.07.2000 01.06.2001 27.05.1996 16.08.1996 28.11.1995

01.01.2010 01.01.2007 01.01.2009 01.01.2007 01.01.2008 01.01.1996 01.01.2011 01.01.1997 01.01.1998 01.01.2007 01.01.2007 01.01.2007 01.01.2010 01.01.2005 01.01.2001 01.01.2002 01.01.1997 01.01.1997 01.01.1996

EXTRACT FROM THE LAW on investments in entrepreneurial activity

No. 81-XV from 18 March, 2004 Official Monitor of the Republic of Moldova No. 64-66/344 from 23 April, 2004 Section III INVESTMENT PROTECTION Article 9. Guarantee on respecting investor rights (1) Public authorities are obliged to observe investors legal rights. (2) In case of investor rights violation by a public authority, the investor is entitled to request elimination of infringement and compensation for damages. Article 11. Guarantee on compensation for damages (1) In accordance with the law the investor is entitled to compensation for damages caused by violation of its rights, including by acts infringing its rights and interests, approved by the public authority or by other unlawful actions undertaken by them. (2) Compensation shall be equal to the real value of the damage at the time of its occurrence. (3) The damage, including loss of profit, incurred by the investor as a result of compliance to the public authority decision, by which its rights have been violated, or as a result of failure or discrepancy by such authority or responsible person to comply to the obligations towards investor, provided by the, the legislation in force of the Republic of Moldova, as well as under the public-private partnership agreements, shall be reimbursed at the expense of the responsible public authority. (4) The compensation shall be paid to the investor in currency invested or in any other currency, if the investment was made in currency. Article 12. Additional guarantees Public authorities can offer, within their competence and as per the legislation in force, or under the publicprivate partnership, additional guarantees to investors, including the hypothecation of goods available to respective authorities. Section IV INVESTMENT DISPUTES Article 14. Settling investment disputes (1) Investment disputes shall be settled amicably. (2) If failed to settle disputes amicably, it shall be submitted to the competent court of the Republic of Moldova or, by mutual agreement of the parties, to arbitration. (3) If agreed to settle the dispute by arbitration, the parties shall expressly acknowledge this fact, indicating, where appropriate, the procedures chosen in accordance with the Law No. 23-XVI of February 22, 2008 on Arbitration and the Law No. 24-XVI of February 22, 2008 on International Commercial Arbitration. Article 16. Binding nature of arbitrary decision The arbitrary decision, regardless of the country where it has been pronounced, shall be recognized as binding and shall be carried out in accordance with the Law No. 23-XVI of 22 February 2008 on Arbitration and the Law No. 24-XVI of 22 February 2008 on International Commercial Arbitration.

Section V SPECIAL PROVISIONS FOR FOREIGN INVESTORS AND FOREIGN INVESTMENTS Article 17. Foreign investment companies and related associations (1) Foreign investment companies can be established in the Republic of Moldova, as joint ventures and foreign capital enterprises. (2) A joint venture is a company established in accordance with the legislation of the Republic of Moldova with the authorized fund consisting partially of foreign investments. (3) A foreign capital enterprise is a company established in accordance with the legislation of the Republic of Moldova, with authorized fund consisting strictly of foreign investments. (4) A foreign investment company is entitled to establish international associations and organizations and be a party to international associations and organizations. Article 18. Registration, operation and liquidation of the foreign investment company (1) The procedure of registration, operation and liquidation of the foreign investment company is similar to the procedure of registration, operation and dissolution of a local company, and is carried out in accordance with the laws of the Republic of Moldova. (2) For the re-registration of the foreign investment company the documents provided by the law for the state registration of enterprises and organizations shall be submitted.. (3) The company established without any foreign investment, purchased by a foreign investor, shall obtain, under the current legislation, the status of foreign capital company. (4) If the foreign investor purchases shares of a company previously established without foreign investments, it shall obtain, under the current legislation, the status of joint venture. Article 19. Branches and representative offices (1) Non-resident enterprises, related associations and international organizations are entitled to establish trade and economic branches and representative offices in the Republic of Moldova. (2) Branches of non-resident enterprises, related associations and international organizations established in the Republic of Moldova shall obtain the status of enterprises belonging to foreign investors on the date of their registration, as provided in Article 18. (3) Representations of non-resident enterprises shall be registered in the Republic of Moldova as required by law, with no rights as a legal person or party to economic activities. (4) Foreign investment companies are entitled to establish, if provided by the articles of association, branches and commercial and economic representative offices, both in country and abroad. (5) Branches and representative offices established in the Republic of Moldova by resident foreign investments companies shall not be legal persons. Article 20. Social insurance and social assistance (1) Social insurance and social assistance shall be provided to employees of a foreign investment company under the laws of the Republic of Moldova. The company shall transfer contributions to the social insurance fund only to foreign employees that have expressed their willingness to benefit from health care and social assistance in the Republic of Moldova. This provision is also applicable to the pension fund payments, under the legislation of the Republic of Moldova. (2) Social security and social assistance contributions of foreign investment companies employees shall be paid in accordance with the fixed rates and in the national currency of the Republic of Moldova. Article 21. Transfer of funds and goods obtained from foreign investments (1) The funds and goods obtained from foreign investments, duly taxed, shall be used and transferred within

the territory of the Republic of Moldova and abroad. Foreign investors are entitled to the exchange of local currency into foreign currency and vice versa, in accordance with the Moldovan legislation. (2) The funds and goods referred to in paragraph (1) include, in particular: a) profit, interest, dividends and other current income; b) amounts paid under contracts concluded, including loans and related interest; c) fees, receipts and other amounts derived from intellectual property rights referred to in Article 4 paragraph (1) f ); d) compensation (indemnity) provided by the valid legislation of the Republic of Moldova, including this law; e) amounts to be paid as a result of dispute settlement; f ) salaries and honoraria of foreign employees, employed under the investment projects carried out in the Republic of Moldova, in the amount and manner established by the legislation of the Republic of Moldova; g) funds and goods derived from investments or resulted from company liquidation; h) amounts obtained by the investors from investments sale or expropriation. (3) In accordance with the present law, funds provided under paragraph (1) and (2) can be converted and transferred by means of authorized banks of the Republic of Moldova, as per the procedures established by the legislation of the Republic of Moldova. (4) Funds shall be converted at the exchange rate of the authorized banks of the Republic of Moldova. (5) Foreign investors are entitled to transfer abroad the income remaining as a result of taxation, or a part of their income, as products purchased in the Republic of Moldova, if it conforms to the legislation of the Republic of Moldova. Article 22. Real Estate Regime Foreign investors can acquire, in accordance with the Moldovan legislation, property rights to the real estate located on the territory of the Republic fo Moldova, except for agricultural land and forest resources, with the purpose to develop entrepreneurial activities. Article 23. Guarantee on the subrogation right recognition The Republic of Moldova recognizes the transfer to another state or foreign legal entity of foreign investor rights to the investments made on its territory.

Community of Independent States

Currently, trade with CIS countries is conducted under a preferential trade regime, which was established by the Agreement on the Creation of a Free Trade Area, signed by the CIS countries on April 15, 1994 and the Protocol to Amend and Supplement the Agreement, signed on April 2, 1999. But so far, the multilateral free trade regime does not function. Thus, trade between CIS countries continue to be conducted under bilateral free trade agreements. Also, the regulation of tariff and non tariff trade barriers is made under the Multilateral Protocol on the Gradual Removal of Barriers to Mutual Trade of CIS Countries of June 3, 2005 and the bilateral protocols signed between member countries. Current CIS Member States: Armenia, Azerbaijan, Belarus, Russia, Kazakhstan, Kyrgyzstan, Moldova, Ukraine, Uzbekistan, Tajikistan, Turkmenistan.

Central European Free Trade Agreement - CEFTA

On 19 December 2006, in Bucharest, the Prime Ministers of the SPSEE countries (Stability Pact for South Eastern Europe) initiated formal negotiations on the draft Amendment and Accession Agreement to the Central European Free Trade Agreement (CEFTA). CEFTA 2006, which replaced the CEFTA 1992, is an agreement with modern provisions, containing an expanded degree of liberalization, especially for trade with industrial products, effective procedures for cooperation and coordination and transparent mechanisms for the implementation of trade protection measures. It also provides for the establishment of an individual mechanism of trade disputes settlement or use of the instrument stipulated by the WTO. The new agreement proposes a uniform, predictable and longterm legal framework, which would contribute to the development of bilateral and multilateral commercial and economic relations between the member states. The main objectives of this agreement are: (a) to consolidate into an unique agreement the existing level of trade liberalization achieved through bilateral free trade agreements already concluded between the parties; (b) to further improve the conditions for promoting investment, including foreign direct investment; (c) to increase trade in goods and services and boost investments by fair, clear, stable and predictable rules; (d) to eliminate barriers and distortions in trade and facilitate the movement of goods in transit and crossborder movement of goods and services between the parties; (e) to provide fair conditions of competition for foreign trade and investment and the gradual opening of public procurement markets of the parties; (f ) to provide adequate protection to intellectual property rights, in accordance with international standards; (g) to ensure effective procedures to implement and enforce the agreement; (h) thus, to contribute to the harmonious development and growth of world trade. CEFTA 2006 aims to remove all import and export customs duties, quantitative restrictions and other charges having equivalent effect on trade in industrial products and most agricultural products. It contains extensive provisions on trade in services, government procurement, customs administration and rules of preferential origin, the procedure and conditions for applying safeguard measures and trade protection tools. Immediately after the entry into force of the Agreement, the Government drafted and approved the Decision No. 955 of 21 August 2007 regulating the import in the Republic of Moldova of products originating in member countries of the Central European Free Trade Agreement (CEFTA). Currently, the commercial relations of Moldova with CEFTA countries are governed by the preferential trade arrangements provided by CEFTA 2006, which requires almost total liberalization of imports of industrial products from CEFTA 2006 countries, except for imports from the Republic of Macedonia, which implies a plan for a gradual reduction of import customs duties. Trade in agricultural products among CEFTA Member States is conducted by three scenarios: full symmetric and asymmetric liberalization. In this context it should be noted that agricultural trade with such countries like Bosnia&Herzegovina and UNMIK / Kosovo is fully liberalized. Trade in agricultural products with Montenegro and Serbia is full and symmetrical, both countries having established import quotas for products such as tobacco, wine and other alcoholic beverages. As of agricultural trade, the agreement provides full exemption from customs duties on imports from Bosnia&Herzegovina and UNMIK / Kosovo, and for the import to Moldova of certain products from other countries it involves the application of tariff quotas, under which exemptions from customs duties will be used. Current CEFTA Member States: Albania, Bosnia&Herzegovina, Croatia, Macedonia, Moldova, Montenegro, Serbia and UNMIK / Kosovo.

Ministry of Economy
The Ministry of Economy is the central public administration body, subordinated to the Government. The basic functions and objectives of the Ministry of Economy are to direct and promote the state economic policies, to ensure economic reform implementation and to raise population living standards. The Ministry is acting according to the Constitution and legislation of the Republic of Moldova, Presidential Decrees, Parliament Decisions, ordinances, decisions and orders of the Government, and other regulations in force, as well as provisions of the present Regulation. The Ministrys mission is to ensure national economic growth by optimizing the regulation framework of the entrepreneurial activity, creating prerequisites for business environment development, developing technologies, ensuring competitiveness, creating an attractive investment environment, contributing to de-monopolization of the domestic market and removing the anti-competitive practices, and international economic cooperation. In order to comply with its mission, the Ministry has the following main functions: 9 identify priority directions of development and conceptual design of the state economic policy; 9 ensure the compliance of economic policies with the national policy documents and monitor their implementation; 9 identify priority areas, develop and promote national action plans and programs in its fields of activity and exercise control over their implementation; 9 participate in the budgeting process, in conformity with Ministrys competences; 9 monitor and evaluate the poverty trends in the Republic of Moldova and community deprivation, etc. The Ministry has the following responsibilities with regard to the investment and export promotion policies: participate in the development and promotion of state investment policies (including attraction of direct foreign investments), free economic zones and export promotion of domestic production; improve legal framework in order to stimulate investment activity; ensure the harmonization of national legislation with the EU rules on investment; participate in policies promoting venture capital investments in companies with high degree of innovation; help creating a favorable investment climate for foreign and local investors, and improve tools for attracting domestic and foreign investment and export promotion; monitor and analyze the process of free economic zones establishment and development, implementation of strategic investment projects and projects beneficial to the national economy; analyze processes and factors influencing the investment activity, the increase of national economic competitiveness and export promotion, and determine priority directions of the state policy in the area. The Ministry is headed by the Deputy Prime Minister, the Minister of Economy. The Ministry has three deputy ministers, appointed and dismissed by the Government upon proposal of the Minister. They are directly subordinated to the Minister and are responsible for the organization of Ministrys operational activities, as per the obligations assigned. To implement activities promoting market economy and achieve the economic policy objectives of the state, there are public specialized institutions and organizations subordinated to the Ministry.

The list of institutions under the Ministry of Economy Public Property Agency Licensing Chamber Main State Inspectorate for Market Surveillance, Metrology and Consumer Protection State Principal Inspectorate for Technical Supervision of Hazardous Industrial Objects Agency for Energy Efficiency State Energy Inspectorate of Chisinau The list of institutions coordinated by the Ministry of Economy Moldovan Export Promotion Organization Small and Medium Enterprises Sector Development Organization Project Implementation Unit of World Bank Competitiveness Enhancement The unit implementing the grant awarded by the Government of Japan

Moldovas trade regime with the EU Autonomous Trade Preferences

By amending the Regulation 980/2005 and the Commission Decision 2005/924/EC, the European Union Council adopted the Regulation No. 55/2008 of 21 January 2008 on the introduction of Autonomous Trade Preferences (ATP) for the Republic of Moldova. The above Regulation grants Autonomous Trade Preferences by removing tariff limits on industrial products and improving access of agricultural products to EU markets. Thus, products originating from the Republic of Moldova were provided free access to EU markets, except for some products that tariff limits were set for, as well as fresh or chilled fruit and vegetables, which shall be imposed customs duties, less ad valorem. The European Union Autonomous Trade Preferences require the establishment of a mechanism for the distribution of quotas on products originating from the Republic of Moldova that tariff limits were set for. In this regard, the Government Decision No. 262 of 7 March 2008 on administration of tariff quotas on exports of goods to the European Union was approved, which proposes to set up a distribution system of export quotas resulting from the production volume of exporting enterprises and/or their ability to use the offered quotas. The product groups that quotas were set for, according to the EU Regulation, are: meat, dairy products, eggs, wheat, barley, maize, white sugar and grape wine. In accordance with the Community procedures in force, in order to export animal products to the EU, the following additional requirements shall be met: 1) Moldovas inclusion in the list of approved countries for the export of such products to the EU; 2) authorization and evaluation of Moldovan producers. As a result, cereals, white sugar and grape wine are the products subject to quotas that can be exported by the republic of Moldova. It should be mentioned that on 24 March 2011 the European Parliament adopted the Decision amending the EU Council Regulation (EC) No. 55/2008 on introduction of Autonomous Trade Preferences for the Republic of Moldova. At present, the Regulation (EC) No. 55/2008 provides for preferential trade arrangements with the European Union until 31 December 2012. Upon the publication of the Decision on amendment of the above mentioned Regulation, the Autonomous Trade Preferences granted to the Republic of Moldova by the EU would be extended until the end of 2015. Moreover, in order to support the Moldovan wine producers, the European Commissions initiative to increase the tariff quota for wine deliveries to 1.5 million dal in 2011 was approved, i.e. 80% more wine exports compared to last year. In 2012, the quota granted for the wine export shall reach 1.8 million dal, and in 2015 it is expected to be 2.4 million dal. Also, we would like to note that, starting from1 November 2010, the powers to issue export permits, allowing agents to benefit from the above tariff quota, were transferred to the Licensing Chamber, an institution under the Ministry of Economy, capable to exercise such powers. In accordance with the Government Decision No. 262 of 7 March 2008 on the administration of tariff quotas on exports of goods to the EU, the permits on the size of allocated quota shall be issued free of charge, for every shipment of goods, based on applications filing and under the general principle first come first served.

MOLDOVA COUNTRY PROFILE

Questions Answers Chisinau (786300 inhabitants) 33843 square kilometers Ukraine, Romania 3560400 people; density of people per sq. km : 105,2 (without the population from the left side of the river Nistru and mun. Bender) Moldovans - 75,8% Ucrainians - 8,4% Russians - 5,9% Gagauzs - 4,4% Romanians - 2,2% Bulgarians 1,9% Moldavian (Romanian) Easily available amongst management staff Parliamentary republic - Word Bank (WB); - European Bank for Reconstruction and Development (EBRD); - International Monetary Fund (IMF); - Central European Initiative (CEI); - Multilateral Investment Guarantee Agency (MIGA); - Stability Pact for South Eastern Europe (SEE). Parliamentary elections (four years in office) Visa free travel, up to three months, for member states of EU and most developed countries. Other countries require visa
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

1
1,01 1,02 1,03 1,04 1,05 1,06 1,07 1,08 1,09

General & Political Information

Capital city (+ inhabitants) Land Surface (km) Neighbouring countries friendly or hostile Population and density people per sqm Ethnic Groups (%) Official Language(s) English Skills Type of government + History Participation/Membership of UN, WTO, GAT, UNICEF, IMF, etc.)

1,10 1,11 1,12

Method of election / Terms of office Visa requirements for visitors (Short & Long term) Monthly Average Temperatures (C)

-3,3
40 30 20 10 0 -10 -20 JAN

-2

2,7

9,8

16

19,4

21,4

20,8

16

10,1

-0,8

FEB

MAR

APR

MAY

JUN

JUL

AUG

SEP

OCT

NOV

DEC

1,13 1,14 1,15 1 15 1,16

History of natural disasters (Earthquake strength history, flood history, forest fires, eruptions ) Timezone Religion R li i Legal System

The Republic of Moldova is periodically affected by floods around Prut and Dniestr rivers and droughts (GMT +02:00) Bucharest time orthodox christian th d h i ti Based on civil law system; Constitutional Court reviews legality of legislative acts and governmental decisions of resolution; accepts many United Nations and Organization for Security and Cooperation in Europe documents; has not accepted compulsory ICJ jurisdiction None State authorities take a very formal approach interpretation of regulations Problem arises only when the property was bought in "unclear" circumstances Data provided by the Transparency-International concerning the Corruption Perception Index for 2010 of the Republic of Moldova, which posted a score of 2,9 points. This index represents an estimated aggregate index based on opinions of experts and entrepreneurs in the states,that are positioned according to the degree to which corruption is perceived among public officials and politicians.

1,17 1,18 1,19 1,20

Vaccination Requirements Economic and regulatory policy uncertainity (unpredictable interpretation of regulations) Lack confidence in courts to uphold property rights Corruption (average bribe % to sales)

1,21

Crime rate %

It includes rates of crimes of corruption in 2009 CCECC registered according to the number of Moldovan population: 6.97 crimes of corruption recorded at 100 000 inhabitants and two crimes of corruption recorded at 10,000 people - economically active population. See http://www.nationmaster.com/country/md-moldova/cri-crime Adopted: Law on the protection of inventions, Law on the protection of industrial designs, Law on the protection of trade marks, Law on the protection of geographical indications, Appelations of Origins and Traditional Specialities Guaranteed, Law on the protection of plant varieties and Law on Copy Rights and Related Laws. Enforcement by State Agency on Intellectual Property (AGEPI) for import - 60 minutes for export - 30 minutes Policy Making based on public hearings and and stakeholders' consultation normal B3 (Moody's 2010) 69,3 years 98,9% of population B- (Fitch) No risk No No No 40 At the request of the employer, employees can work outside office hours within 120 hours in a calendar year. In exceptional cases this limit, in agreement with employee representatives, can be extended up to 240 hours. The overtime for the first two hours are remunerated in an amount of at least 1.5 tariff wages (monthly salary) and for the next hours - at least double in size. Employees, who work in shifts enjoy the right to offset increases in the amount of 20% of the average tariff rate for each hour of work in exchange for two life-size and 50% for each hour of work in exchange for three. 11 days The minimum duration of paid annual leave is 28 calendar days. Page 1 of 5

1,22

Level of protection of copyrights and intellectual property

1,23 1,24 1,25 1,26 1,27 1,28 1,29 1,30 1,31 1,32

Average days to clear customs Transparency of government policy making Credit rating of the country Life expectancy at birth (years) Adult literacy rate (% of people aged 15 and above) Political risk and government stability Terrorism risk Effect of Military in politics and to what extent (yes or no) Was there a coup d'etat in the history? Effect of religion in politics and to what extent (yes or no)

2
2,01 2,02

Labour Information
Working hours per week Overtime regulation & Premium

2,03

Shift premiums (2 Shift & 3 Shift) + Application Time

2,04 2,05

Holidays per year (incl. Bank holidays) Paid Holidays per year

MOLDOVA COUNTRY PROFILE

Questions 2,06 Minimum Monthly Wage (History + Forecast) lei 2005
Minimum wage Guaranteed minimum amount in the real sector

Answers

2006 200 700

2007 200/400 700

2008 400 900

2009 600 900

2010 600 1100

200 550

2,07

Average Monthly Wage (Gross salary) ; (History + Forecast)

The average salary of an employee in US $

2005 1319 105

2006 1697 129

2007 2065 170

2008 2530 244

2009 2748 247

2010 2972 240

2011 3300 266

2012 3650 292

2013 4000 319

2014 4400 349

2,08

Social Insurance (Contribution)

For persons employed under an individual labor contract: employer - 23%, employee - 6%; Self employer persons: 4044 lei; Civil Aviation staff whose working conditions are covered in special circumstances: state - 6%, employee - 6%; Employed in the agricultural sector under an individual labor contract: employer 16%; state 6%; employee 6%; Self-employed persons in the agricultural sector: 996 lei. Individual employment contract is comcluded, usually for an undetermined period. Individual employment contract may be conlcuded on a fixed term not exceeding five years, but only for the performance of temporary work, in cases expressly provided by the Labor Code. No obligatory trade union existence on company level, though workers can initiate creation of a trade union. Of the people employed in 2010 23% were with higher education, 15,8% with specialized secondary education, 24,2% with professional secondary education, 20,7% with high school education, 15,6% with secondary education and only 0,7% of the employed population had no school or primary. The activity rate of population (the proportion of active population from 15 years and over in total population) in 2010 was 41,6%. The distribution of the national economy: 27,5% of employed persons worked in agriculture, 12,8% - in industry, 5,9% - in construction and 53,8% - in the service sector.

2,09

Availability of fixed-term contracts (temporary hiring)

2,10 2,11

Availability of working / not working with unions Education level of employee (% per high school, university graduates)

2,12

Workforce percent in total population and details of it per service, production and agriculture

3
3,01

Economical Information
Benefits of Trade Agreements International Trade Agreements: - Autonomous Trade Preferences with European Union - Membership of World Trade Organization 17 Free Trade Agreements with: - Members of CEFTA (7 countries of SE Europe) - Members of CIS (9 countries) + Georgia The currency of the Republic of Moldova is the Moldovan leu, that is the only legal tender within the territory of the Republic of Moldova. The Republic of Moldova accepted the obligations of the Article VIII, Sections 2, 3 and 4 of the IMF Articles of Agreement starting with June, 30, 1995. Accepting the mentioned obligations, the Republic of Moldova undertook the obligation of avoiding to impose, without the IMF approval, the restrictions on making of payments and transfers for international current operations, from the participation in discriminatory foreign exchange arrangements and from using the practice of multiple exchange rates. Licensed banks and foreign exchange offices are the authorized participants in the domestic foreign exchange market.

3,01

Currency, convertibility of the currency and currency exchange system

3,02

Exchange Rate against Euro (incl. History)

2006 2007 2008 2009 2010

Annual Annual Annual Annual Annual 114,1 113,1 107,3 100,4 108,1 107,5 (Q4, 2011 / Q4, 2010) 105,0 105,0 105,0

1 EUR = 16.4918 MDL 1 EUR = 16.5986 MDL 1 EUR = 15.2916 MDL 1 EUR = 15.5248 MDL 1 EUR = 16.3995 MDL

3,03

Inflation (Incl. History & Forecast)

CPI, december last year = 100% 2006 2007 2008 2009 2010 2011 (forecast) 2012 (forecast) 2013 (forecast) 2014 (forecast) 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 7,4% 5,1% 4,0% 6,4% 7,4% 2988 3409 4401 6056 5439 5808 6623 7304 8016 8720

3,04

Unemployment Rate (Incl. History)

3,05 3,06

Employed population GDP (Incl. History & Forecast), mil.USD

1,143 mil. persons (2010)

Page 2 of 5

MOLDOVA COUNTRY PROFILE

Questions 3,07 GDP/Head (Incl. History & Forecast), USD 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 831 951 1230 1696 1525 1632 1865 2060 2266 2470 107,5 104,8 103,0 107,8 94,0 106,9 105,0 105,0 105,0 104,5 Answers

3,08

GDP Growth (Incl. History & Forecast)

3,09 3,10 3,11 3,12 3,13

Leasing Regulations Average days and number of procedures to start a business Average days and number of procedures to enforce a contract Average days and number of procedures to register a property Current account balance (Millions of dollars)

Governed by the Law on leasing No. 59-XVI of 28. 04. 2005 10 days and 8 procedures average 365 days and 31 procedures average 5 days and 5 procedures average 2005 2006 2007 2008 2009 2010 estim 2005 2006 2007 2008 2009 2010 2005 2006 2007 2008 2009 2010 -225,8 -388,8 -673,8 -987,4 -464,6 -578,1 190,7 233,2 539,3 707,6 86,4 1022,9 1256,5 1847,7 2565,7 2649,5 2825 22,4 20,7 , 16,2 12,9 15,8

3,14

Foreign direct investment per year and accumulated (Millions of dollars)

3,15

Total debt of government (millions of USD) and % of debt to GDP

656,3 718,2 , 765,8 778,3 773,7

3,16

Banking legislations (tight / moderate / free market conditions)

Banks of the Republic of Moldova perform their activities according to the Law on Financial Institutions and other related normative/official acts that could be found accessing the official web-site of the National Bank of Moldova (http://www.bnm.md/en/legislation). Therefore, the Law on Financial Institutions contains provisions related to licensing of banks; minimum capital requirements; charter and by-laws; powers and responsibilities of the banks management; commercial secrecy, banking secrecy and fiduciary obligations; combating money laundering and terrorism financing; conflicts of interest; prudential requirements; external audit, reports and inspections; infractions, penalties and remedial measures, etc. The general principles of foreign exchange regulation in the Republic of Moldova, the rights and the obligations of residents and non-residents related to the foreign exchange field are established by the Law No.62-XVI as of March 21, 2008 on Foreign Exchange Regulation (hereinafter - Law No. 62-XVI as of March 21, 2008) that became effective on January 18, 2009. In cases stipulated in the law, the normative acts of the National Bank of Moldova (NBM) worked out based on this law establish conditions and procedure of performing foreign exchange operations. Regarding performing money transfer abroad the Law No.62-XVI as of March 21, 2008 establishes the following. Payments and transfers within current foreign exchange operations shall be made by residents and nonresidents without restrictions. The payments and transfers within capital foreign exchange operations shall be made by residents and nonresidents without restrictions in the event that the foreign exchange operations, from which such payments and transfers arise, are made in compliance with the requirements of this Law. The basic requirement of the Law No.62-XVI as of March 21, 2008 - performing of some foreign exchange operations with the NBM authorization - is applied only for residents and only for certain foreign exchange operations specified by the law. Exceptions are some operations of non-residents related to import and export of foreign exchange values, for performing of which the NBM authorization is required. Residents shall perform with the NBM authorization the following capital foreign exchange operations which imply the outflow of capital from the Republic of Moldova (with certain specific exceptions, when applicable): - some operations with foreign financial instruments; - granting of financial loans /credits by residents to non-residents; - providing of guarantees by residents to non-residents in specified cases; - opening by residents of current and deposit accounts with the financial institutions from abroad; - some personal character operations; - some other capital operations.

3,17

Availability of money transfers to abroad and list of restrictions

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MOLDOVA COUNTRY PROFILE

Questions Answers Also, the payments and transfers into /from the Republic of Moldova between residents, as well as the unilateral transfers of residents into /from the Republic of Moldova shall be made in cases specified by the law. Otherwise, such payments/transfers shall be made with the NBM authorization. The payments and transfers into/from the Republic of Moldova between non-residents, as well as the unilateral transfers of non-residents into /from the Republic of Moldova shall be received/made without restrictions. Funds received by non-residents within foreign exchange operations, available on the accounts thereof, opened with licensed banks, may be transferred abroad without restrictions. The requirements of foreign exchange legislation regarding the way of receiving /making payments and transfers within foreign exchange operations (in cash or cashless, with or without the use of payment instruments), the currency that may be used when receiving /making the specified payments and transfers (national currency or foreign currency), the requirement of submitting justifying documents related to the payments shall not be regarded as restrictions.

3,18

Availability of profit repatriation (Yes or No)

YES According to the paragraph (1) of Art.21 of the Law No.81-XV as of March 18, 2004 on Investments in Entrepreneurial Activity, funds and assets obtained from foreign investment, after payment of tax obligations, are usable and transferable in the Republic of Moldova and abroad.

4
4,01

Tax Information
VAT The standard VAT rate is 20%. The reduced VAT rates- 8% and 6%: - the reduced 8% VAT rate applies to supplies of dread and bakery products and milk and dairy products, except for baby- food which is VAT exempt - the reduced 6% VAT rate applies to the supply/import of natural and liquefied gas. Zero VAT rate . 0% VAT rate is applied to: -The export of goods and services -All kind of international transportation for passengers and goods -Electricity, thermal energy and hot water provided to the population -Goods and services imported to the Free Economic Zones -Services provided on territory of Moldova by light industry entities under customs regime of active processing -Import goods for official use of diplomatic missions in Moldova -Import goods for the purpose of technical assistance -Goods delivered to duty-free stores. Income tax is regulated by Parts I and II of the Tax Code of the Republic of Moldova and by the Law on Income Tax Administration and Enforcement of Parts I and II of the Tax Code. Article 15.Tax rates The total amount of the income tax shall be: a) for individuals, except for farmers (peasant farms) and individual entrepreneurs: a tax of 7% from the annual taxable income that does not exceed the amount of 25200 lei; a tax of 18% from the annual taxable income that exceeds the amount of 25200 lei; b) for legal entities a tax of 0% of the taxable income (until 2012); c) for farmers (peasant farms) and individual entrepreneurs a tax of 0% from the taxable income. d) for economic agents which income was calculated in accordance with Art.225 accounting for 15% of the surplus of the estimated income compared to the gross income registered in the accounting system of the economic agent (introduced by Law No. 144-XVI of June 27, 2008, in force since January 1, 2009). Article 91. Withholding on payments to non-residents (1) Persons referred to in Article 90 paragraph (1) retain from the income of the non-resident, as specified in Article 71, a tax from the amount of payments to the non-resident (without the right to carry forward (credit) for the non-resident) in the amount of 15% from: payments directed to be made in monetary and non-monetary form to the non-resident, which amount is not deductible for tax purposes; other income. (2) Provisions of para. (1) shall not apply to income derived in the form of salary, from which the retention under art.88.

4,02

Corporate Income Tax

4,03

Withholding Tax

4,04

Customs : Import & Export Duties & Routines

Import duties; export duties - customs fee, customs formality charge, value added tax, excise duties and any other amounts due to the state for the import of goods and charged by the Customs Authority in accordance with the legislation. The following fees are paid when goods move across the customs frontier and in other cases as set forth by the legislation: customs duty -in conformity with the import customs tariff value added tax - in conformity with Chapter III of the Fiscal Code excise taxes - in conformity with Chapter IV of the Fiscal Code customs service fees - in conformity with the Law on customs tariff other fees as set forth by law. The import duties and export duties are paid directly by the declarant, customs broker or another person as foreseen by law.

4,05

Benefits for foreign companies or companies exporting products (Tax holidays,) Custom regims: import, re-import, transshipment, customs warehouse, duty free shop, processing in the customs territory, processing under customs control, temporary import, free zone, free customs warehouse, processing outside the customs territory, export, re-export, destruction, abandonment to the state. International & Local Banks Out of total number of banks the capital of 4 banks is formed of foreign investments (3 of them are branches (that according to the local legislation are independent legal entities) of foreign banks), the capital of 1 bank is formed of local investments and the capital of 10 banks is formed of foreign and local investments. Free repatriation Conventions for avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income and capital between Republic of Moldova and 43 countries Allowed Normal import regulations apply Not applicable

4,06

4,07 4,08 4,09 4,10 4 10 4,11

Intercompany Dividends, Royalties. Double Taxation treaty Interest and allowance on Company Loans Conditions for permission for bringing used machinery into the country Thin capitalization rules

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MOLDOVA COUNTRY PROFILE

Questions Answers Yes Information not available Yes and cost price depending on provider Yes and cost price depending on provider Public roads - 10537 km including: 1. national roads - 3670 km; 2. local roads -6867 km Operational length of railways: 1157.1 km, broad gauge 1520mm - 1146.1 km, narrow gauge 1435mm - 11.0 km, single track - 1072.6 km, double track - 84.5 km The Republic of Moldova has two inland waterways - the Nistru river and the Prut River, which in d ith airoports: I.S.A t th i i l d ith i t ti li t Two internationalth E International Airport Chisinau andt International Airport Balti; Air service companies: - an airline company I.S.C.A. "AirMoldova"; - two companies involved in aviation services for agriculture I.S. "Moldaeroservice" and I.S.C.A "Agrovia"; - I.S. "MoldATSA" company responsible for using the airspace of the Republic of Moldova, I.S. "Aviation Training Center", I.S. "Civil Aviation Medical Center", also in branch of civil operating two joint-stock companies with majority capital S.A. "Handling" and S. A. "Catering". The main diractions operated from "International Airport Chisinau": Athens, Bucharest, Budapest, Frankfurt, Istambul, Larnaca, Lisbon, London, Madrid, Milano, Moscow, Paris, Prague, Riga, Rome, St. Petersbourg, Tel Aviv, Timisoara, Verona and Wien. National airlines companies: I.S.C.A. "AirMoldova", I.M. "Moldavian Airlines" S.A., "Tandem Aero" S.R.L. and "NobilAir" S.R.L. Foreign air companies operating in Republic of Moldova: "Turkish Airlines", "Austrain Airlines", "Sibiri", "Meridiana SpA", "Tarom", "CarpatAir", "AirBaltic".

5
5,01 5,02 5,03 5,04 5,05

Infrastructure
Availability of Electricity + Cost Losses from electricity outage (% to sales) Availabilty of Gas + Cost Availability of Water + Cost Road Network

5,06

Rail Network

5,07 5,08

Sea Network (Harbors & Routes) Air Network

5,09

Free Trade Zones (Benefits + Availability)

FEZ Expo-Business-Chisinau FEZ Ungheni-Business FEZ Otaci-Business FEZ Taraclia FEZ Tvardita FEZ Valkanes FEZ Balti Free International Port Giurgiulesti Free International Airport Marculesti All Moldovan Free Economic Zones provide preferential conditions to local and foreign investors that can invest in different types of entrepreneurial activities. The range of industrial goods produced in the FEZs has diversified significantly during the last few years years. Investors in Moldovan FEZs are guaranteed against, and protected from changes in legislation for a period of up to 10 years, and the legislation provides further incentives, guarantees and privileges for Free Economic Zone investors. Created for a period 25-30 years FEZs offer the following customs and tax benefits to their residents: - Exemption from VAT; - Exemption from customs duties on goods imported into the FEZ and subsequently exported; - Exemption from excise duties for goods imported into the FEZ and subsequently exported; - Exemption on taxable income obtained from production within the FEZ. By law Industrial Parks may be created either on the territory of state enterprises or through Greenfield investments. The industrial parks are characterised by: Operational period of no less than 15 years and no more than 50 years; The infrastructure ensured by government; Investors pay only 30% of the normative rent cost; Investors can buy areas after experation of the park operational period. The new Law on Industrial Parks: Offering support on central and local level Allow better use of public and private assets Title granted for 30 years to Administrator Company The administrator company can also be a resident in its industrial park Industrial Park incentives: Free of charge land destination change Free of charge state-owned land transfer to administrator company Opportunity to rent state-owned land with 30% discount State contributions to infrastructure and technology development Limited and controlled state inspections Assistance from local authorities and the Council for promotion of investment projects of national importance Fiscal incentives

5,10

Industrial parks

5,11

Public Private Partnership

Benefits of PPP Utilization of sector core competency Contributes to local economy Cost competitiveness Risk sharing Promotes local employment opportunities Fulfillment of obligations of state and private sector Landlines, mobile, phones, fixed and mobile internet easily available Law on Environment Protection and Law on Payment Environmental Pollution 6,3 thousand tons/year

5,12

Tele-Communications

6
6,01 6,02

Legal Requirements
Pollution Carbondioxide emissions (millions of tons)

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Resource Directory
Official website of the Republic of Moldova (www.moldova.md) Official website of the President of the Republic of Moldova (www.presedinte.md) Official website of the Parliament of Moldova (www.parlament.md) Official website of the Government of the Republic of Moldova (www.gov.md) Official website of the Ministry of Economy of the Republic of Moldova (www.mec.gov.md) Official website of the Moldovan Investment and Export Promotion Organization (www.miepo.md) Official website of the Chamber of Commerce and Industry of the Republic of Moldova (www.chamber.md) Official website of the Academy of Science of the Republic of Moldova (www.asm.md) Legislation of the Republic of Moldova (http://lex.justice.md/) Tourism in the Republic of Moldova (www.turism.md) National Bureau of Statistics of the Republic of Moldova (www.statistica.md) Moldpres State News Agency (www.moldpres.md) United Nations Organization in Moldova (www.un.md) United Nations Development Program in Moldova (www.undp.md) World Bank Office in Moldova (www.worldbank.org.md) International Monetary Fund Office in Moldova (www.imf.md) OSCE Mission to Moldova (www.osce.org/moldova)