---
title: "Moldova injects €203m into manufacturing to boost investments"
url: https://radiomoldova.md/p/83348/moldova-injects-203m-into-manufacturing-to-boost-investments
published: 2026-08-18T15:00:00Z
language: en
author: "Dumitru Petruleac"
section: "Economic"
source: radiomoldova.md
---

# Moldova injects €203m into manufacturing to boost investments

> Moldova is set to double its state aid scheme for capital investments from 2 billion MDL to 4 billion MDL (€203M / approx. 4B MDL), according to a draft resolution scheduled for Cabinet review on August 19.

![](https://storage.radiomoldova.md/images/a0a50007-ab3f-48e6-9ae8-a7e702c0756b.jpg)

Moldova is set to double its state aid scheme for capital investments from 2 billion MDL to 4 billion MDL (€203M / approx. 4B MDL), according to a draft resolution scheduled for Cabinet review on August 19.

The expanded financing framework allocates €50.8M (1B MDL) for direct non-reimbursable grants and €152.3M (3B MDL) for tax incentives. Under the scheme, eligible manufacturing companies benefit from a 50% income tax reduction, cutting their effective tax rate from 12% to 6% until January 1, 2034.

**Meeting high investor demand**

The government proposed the expansion following a sharp rise in corporate demand. By the end of 2025, businesses submitted 35 state aid applications requesting over €66M (1.3B MDL) from the initial budget.

To prevent capital concentration among a few large players, the revised framework halves the maximum support per project from 20% to 10% of the total budget.

**Stricter eligibility and oversight**

The new rules tighten compliance standards by excluding corporate group affiliates tied to a single investment project, as well as entities controlled by individuals under international sanctions.

The draft also streamlines administrative processing. Applicants submitting incomplete files will receive a single notice to rectify errors within five business days, with a second notice allowed only under justified circumstances. Non-compliant applications will be rejected without a merit review.

**Annual monitoring and EU alignment**

A newly added chapter establishes inter-institutional cooperation and digital monitoring via state interoperability platforms. Small and medium enterprises will undergo compliance tracking for three consecutive years, while large enterprises will be monitored for five years using a standardized scoring grid.

If a beneficiary fails to meet agreed economic targets or eligibility criteria, the state aid provider will partner with the State Tax Service to cancel tax privileges and recover granted funds plus interest.

The reform directly supports Moldova’s integration obligations under the EU Growth Plan for 2025–2027, which requires the country to sign at least 10 individual state aid agreements annually. Eligible investments include tangible and intangible assets located in Moldova and registered on corporate balance sheets.

Translation by **Iurie Tataru**

> NU-275-MDED-2026 by dumitrupetruleac03