Georgia, Moldova and Ukraine get ready for free trade area
Published in EconomicsMonday, 12 September 2016 17:16
Moldova and Ukraine have significantly improved, according to an article on the website of the European Bank for Reconstruction and Development (EBRD). EU funding has provided support to help businesses in Georgia, Moldova and Ukraine, allowing them to take full advantage of unrestricted access to the world’s largest market, the EBRD says, adding that the €400 million funding has helped local entrepreneurs to grow their business, train local partner banks and improve the business environment through policy dialogue with relevant government authorities.
These efforts have resulted in significant improving of production, adaptation to EU standards and opening new export markets for local enterprises.
The three countries signed Association Agreements with the EU that foresee the establishment of a Deep and Comprehensive Free Trade Area (DCFTA) between each country and the EU.
This development is expected to provide businesses and the economy - from farming to the IT sector - with a vital boost. The EBRD is providing finance to small and medium-sized enterprises in all three countries, supported by the EU with a risk-sharing model. The loans provided by the EBRD and EU not only help to increase the share of exports, but support the local economy through creating new job opportunities and discovering new market opportunities.
The EBRD started in May 2016 to provide €380 million in loans and trade guarantees to local partner banks and other financial institutions for on-lending to businesses, while the EU is making available €19 million for technical assistance, investment incentives and risk-sharing.
The EU funds are part of the EU4Business initiative, which provides a comprehensive package of support to attract new investments and improve services and products to the benefits of all citizens and consumers across the Eastern partnership region.