Reading Time: 2 minutes
During the period from 2020 to 2023, the real estate market in Moldova experienced significant growth, with prices rising by approximately 30% on average, and even higher for newly built properties (40-50%). Additionally, the average official income per person increased from 8,860 MDL at the end of 2020 to 13,400 MDL in Q4 of 2023. Despite the negative growth of GDP in 2020, Moldova’s GDP increased from 11.53 billion USD to 14.78 billion USD in 2023 showing an impressive growth.
Challenges
An important aspect of entering Moldovan market was that there is a partner and shareholder who is operating on that market. In 2020, after entering a partnership with Kirsan, we published a comprehensive review of the Moldovan market, economy, and the new presidency of Maia Sandu, along with market outlooks. As we reassess the situation now, we find that our fundamental outlooks have largely proven correct. However, certain unforeseen challenges related rather to the legal system in the country have emerged, impacting projects in Moldova (and other countries) and our investors.
Legal Proceedings
After the companies associated with Kirsan instead of fulfilling their obligations and given promises relocated theif offices to small city of Bălţi located 140 km away from Chisinau (the full address is Bălţi, str. Sfântul Nicolae 112) and the next day initiated the accelerated debt restructuring procedures, we, as it is expected in modern world and democratic Country, got the debt to our investors proved and confirmed by the court in every process that was initiated for the companies in debt.
Despite our efforts to seek resolution through legal channels, we have encountered questionable decisions by the courts and bankruptcy administrators. However, we have escalated the matter to other authorities, including the Anti-Corruption Agency of Moldova.
We are encouraged by the appointment of young, energetic and very promising investigator Victor Fromusachi to lead the investigation. Our representatives have met with him to provide information and details and have received a positive feedback.
Positive Change
When Maia Sandu assumed office in 2020, the central goals and pledges of her electoral campaign were aimed at reducing (if not eradicating) corruption within the nation and steering it toward EU integration in the foreseeable future. The ongoing investigation and the government’s attention to this issue will help our investors and make the country a better place for investing. We anticipate that the ongoing investigation and the authorities’ keen interest in this matter will yield favorable outcomes for our investors and contribute to fostering a positive image and investment climate for the country itself.
We remain committed to transparency and diligently working to address the challenges faced by our projects in Moldova. We appreciate the continued support and understanding of our investors as we navigate through these complexities.
Reinvest24 assumes no responsibility or liability for any errors or omissions in the content of this article. The information contained in this article is provided on an “as is” basis with no guarantees of completeness, accuracy, usefulness or timeliness.