R 221042Z JAN 09
FM AMEMBASSY CHISINAU
TO SECSTATE WASHDC 7544
DEPT OF TREASURY WASHINGTON DC
DEPT OF COMMERCE WASHINGTON DC
CIM NTDB WASHINGTON DC
INFO EUROPEAN POLITICAL COLLECTIVE

UNCLAS CHISINAU 000044 
 
 
STATE FOR EB/IFD/OIA AND EUR/UMB 
BUCHAREST FOR FCS 
KYIV FOR FCS 
SOFIA FOR FAS 
STATE PASS OPIC 
 
E.O. 12958: N/A 
TAGS: EINV EFIN ETRD PGOV KTDB OPIC USTR MD
SUBJECT: MOLDOVA 2009 INVESTMENT CLIMATE STATEMENT 
(PART 2 OF 2) 
 
REF: 08 STATE 123907 
 
 
Protection of Property Rights 
----------------------------- 
 
¶44.  The legal system protects and facilitates the 
acquisition and disposition of all property 
rights.  Moldova has adopted laws on property and 
on mortgages.  A system for recording property 
titles and mortgages is in place; however, the 
mortgage market is still underdeveloped. 
 
¶45.  Moldova adheres to key international 
agreements on intellectual property rights. 
Moldova is a signatory to the International 
Convention Establishing the World Intellectual 
Property Organization. 
 
¶46.  Moldova took measures to implement and 
enforce the WTO TRIPS agreement before its 
official accession to the WTO, and adopted local 
laws to protect intellectual property, patents, 
copyrights, trademarks and trade secrets.  The 
country has an agency for the protection of 
copyright, the State Agency for Intellectual 
Property.  Although many basic policies are in 
place and meet international standards in the 
field, enforcement is sporadic.  Also, Moldova 
still needs to implement changes to its Criminal 
Code to strengthen copyright protection. 
 
Transparency of the Regulatory System 
------------------------------------- 
 
¶47.  Bureaucratic procedures are not always 
transparent and red tape often makes processing 
unnecessarily long, costly and burdensome. 
Discretionary decisions by state functionaries 
provide room for corruption.  The GOM has taken 
measures to fight corruption with the 
implementation of the "guillotine law," which 
eliminated costly and obsolete regulations and 
forced the publication of all business-related 
regulations.  All regulations and governmental 
decisions related to business activity have been 
published in a special business registry.  These 
steps were intended to raise the awareness of 
business people about their rights, increase the 
transparency of business regulations, and help 
fight corruption.  A second "guillotine law," the 
Law on Basic Principles Regulating Entrepreneurial 
Activity, was enacted in August 2007.  To enhance 
transparency in the drafting of laws and 
regulatory acts, the GOM started applying a 
Regulatory Impact Assessment to all draft laws and 
acts bearing on business activity.  The GOM vetted 
100 laws with the goal of reducing payments to 
regulatory and control bodies and streamlining 
business-licensing procedures and economic- 
financial controls. 
 
¶48.  The legal framework for anti-monopoly 
regulation is the Law on Protection of 
Competition.  The law establishes the fundamental 
principles, based on EU standards, for regulating 
the activity of enterprises with a de facto 
monopoly and for support and development of 
competition.  After several years of delay, the 
government established a National Competition 
Agency in 2007.  However, the agencyQs targeted 
actions against major foreign investors right at 
its outset drew accusations of abuse, lack of 
experience, and flawed antitrust legislation. 
While the GOM has taken note of the business 
community's complaints, it has not taken action to 
change the law. 
 
¶49.  The government took measures to streamline 
business registration with the implementation of a 
"one-window" approach in 2004.  Despite the 
creation of a Licensing Chamber and a significant 
reduction in the number of regulated business 
activities requiring licensing, businesses must 
still provide a great deal of supporting 
documentation to receive a license.  The GOM has 
made progress in simplifying registration 
procedures during the startup stage, but still has 
a long way to go to ease day-to-day business 
activity and simplify regulation of foreign trade 
transactions, business licensing, and lending. 
 
¶50.  The government usually publishes significant 
laws in draft form for public comment.  The 
working group of the State Commission for 
Regulation of Entrepreneurial Activity, which was 
established as a filter to eliminate excessive 
business regulations, meets weekly to vet draft 
governmental regulations dealing with 
entrepreneurship.  The working groupQs meetings 
are open to interested businesses.  The Foreign 
Investors Association (FIA) was established in 
2004 with the support of the OECD.  The FIA 
engages in a dialogue with the GOM on topics 
related to the investment climate and publishes an 
annual White Book of concerns and recommendations 
for the improvement of the investment climate.  In 
2006, the American Chamber of Commerce was 
registered in Moldova, representing another voice 
for the business community. 
 
¶51.  In 2003, the GOM passed new criminal and 
civil codes and ratified several important 
international conventions that, in general, create 
a better environment for the market system. 
 
¶52.  Moldova introduced its National Accounting 
Standards (NAS), based on International Accounting 
Standards (IAS), in 1998.  While this meant 
greater transparency of financial information and 
compatibility with IAS, the NAS has not been 
updated since then, leaving it outdated.  NAS is 
not compatible with the International Financial 
Reporting Standards (IFRS) introduced in 2004.  A 
new law on accounting took effect on January 1, 
¶2008.  Moldova is moving toward adoption of IFRS 
by 2011.  Large and publicly listed companies that 
meet compliance criteria set out in the law must 
apply the IFRS from January 1, 2009. 
 
Efficient Capital Markets and Portfolio Investment 
--------------------------------------------- ----- 
 
¶53.  Laws, governmental decisions, securities 
regulations, National Bank regulations, and Stock 
Exchange regulations provide the framework for 
capital markets and portfolio investment in 
Moldova.  The GOM began regulatory reform in this 
area in 2007 with a view to spurring the 
development of the weak non-banking financial 
market.  In particular, only two bodies Q the 
National Bank and the National Commission on the 
Financial Market Q regulate financial and capital 
markets starting in 2008. 
 
¶54.  Credit is allocated on market terms with 
banks being the only reliable source of business 
financing.  The GOM regulates credit policy via 
credits from the National Bank, auctions through 
commercial banks, compulsory reserves, credits 
secured through collateral, open market 
operations, and T-bill auctions on the primary 
market.  Foreign investors may obtain credit on 
the local market.  However, local commercial banks 
loan funds at prohibitively high interest rates, 
and mostly short term, which reflect the countryQs 
perceived high economic risk and inflation.  The 
situation has been further aggravated by the 
uncertainty about the fallout from the global 
credit crunch.  Also, large deals rarely can be 
financed through a single bank and require a bank 
consortium.  Recent years have seen a growth in 
leasing and micro-financing.  In 2007, Raiffeisen 
Leasing was the first international leasing 
company to open a representative office in 
Moldova. 
 
¶55.  The private sector's access to credit 
instruments is difficult because of the 
insufficiency of long-term funding and excessively 
high interest rates.  Financing through local 
private investment funds is virtually non- 
existent.  A few U.S. investment funds have been 
active on the Moldovan market, notably NCH 
Advisors, Western NIS Enterprise Fund, and 
Emerging Europe Growth Fund, the latter two 
managed by Horizon Capital equity fund managers. 
 
¶56.  In 2007, a "mega-regulator," the National 
Commission on the Financial Market (NCFM), 
replaced the National Securities Commission.  The 
NCFM supervises the securities market, insurance 
sector and non-bank financing.  The NCFM is 
operationally independent.  Starting October 1, 
2008, it acquired the right to issue and withdraw 
licenses for all non-bank financial sectors it 
supervises.  The Commission adopted a Corporate 
Governance Code and passed new regulations 
intended to simplify the issuance of corporate 
securities and increase the transparency of 
transactions at the Moldovan Stock Exchange.  The 
GOM is interested in transforming Moldova into a 
regional hub for capital market services by 
becoming a center of distribution of international 
venture capital.  The GOM wants to attract 
investment fund management companies to relocate 
their regional headquarters to Moldova. 
 
¶57.  Moldovan banks are the main source of 
business financing, with non-bank financing, 
albeit growing, poorly developed.  The banking 
system has two levels:  the National Bank of 
Moldova (NBM) and 16 commercial banks.  The NBM 
supervises the commercial banks and reports to the 
Parliament.  The GOM holds a controlling stake in 
one bank, Banca de Economii (a savings bank).  As 
of November 30, 2008, foreign investors' share in 
Moldovan banks' capital was more than 73 percent. 
 
¶58.  As of September 2008, total bank assets were 
USD 3.8 billion (equal to 83.5 percent of GDP). 
Moldova's five largest commercial banks account 
for about 62 percent of the total bank assets, as 
follows (as of September 30, 2008): Moldova 
Agroindbank: MDL 7,839 million (USD 757 million) 
in assets; Victoriabank: MDL 5,189 million (USD 
501 million); Moldindconbank: MDL 4,868 million 
(USD 470 million); 
Mobiasbanca: MDL 3,744 million (USD 362 million); 
Banca de Economii: MDL 3,626 million (USD 350 
million). 
 
¶59.  Unofficial "cross-shareholding" and "stable 
shareholders" agreements are used mostly by 
investment funds to restrict other companies' 
participation, but are not specifically aimed 
against foreign investment. 
 
¶60.  Measures to prevent hostile takeovers are 
typically designed to protect against all 
potential takeovers, not just foreign takeovers. 
 
¶61.  No laws or regulations authorize private 
firms to adopt articles of incorporation or 
association which limit or prohibit foreign 
investment. 
 
¶62.  The U.S. Embassy has no reports about private 
sector or government efforts to restrict foreign 
participation in industry standards-setting 
consortia or organizations.  However, private 
enterprises' internal regulations may include such 
restrictions. 
 
Political Violence 
------------------ 
 
¶63.  The U.S. Embassy has received no reports over 
the past ten years involving politically motivated 
damage to projects or installations in Moldova. 
Such civil disturbances are unlikely in the near 
future. 
 
¶64.  Separatists control the Transnistrian region 
of Moldova along the eastern border with Ukraine. 
Although a brief armed conflict took place in 
1991-1992, the cease-fire of July 1992 has 
generally been observed.  Local authorities in 
Transnistria maintain a separate monetary unit, 
the Transnistrian ruble (current market exchange 
rate is approximately 8.5 rubles per one USD), and 
a separate customs system.  Despite the political 
separation, economic cooperation takes place in 
various sectors.  In recent years, the GOM has 
implemented measures requiring businesses in 
Transnistria to register with Moldovan authorities 
(see paragraph 26).  A settlement is still being 
negotiated with the Organization for Security and 
Cooperation in Europe (OSCE), Russia, and Ukraine 
acting as guarantors/mediators and the U.S. and EU 
as observers (the "five plus two").  After a 
stalling of the settlement talks since 2006, 
negotiations resumed in 2008 following several 
confidence-building initiatives announced by the 
Moldovan President earlier in 2007.  Any progress 
in talks has been piecemeal at best. 
 
Corruption 
---------- 
 
¶65.  Moldova is making efforts to adopt European 
and broader international standards to combat 
corruption and organized crime.  However, 
significant governance challenges remain as 
government commitment to fighting corruption has 
not been successful.  The GOM's failure to reduce 
corruption is reflected by the deteriorating 
country ranking on the Transparency International 
corruption index, placing Moldova at 109th place 
in 2008 (down from 79 in 2006). 
 
¶66.  In 2007, Moldova ratified the United Nations 
Convention against Corruption, subsequently 
adopting amendments to its domestic anti- 
corruption legislation.  As a consequence, the 
Parliament has adopted the new Law on Preventing 
and Combating Corruption.  In 2008, the GOM also 
developed several companion draft laws designed to 
address current legislative gaps. 
 
¶67.  Moldova's Criminal Code came into effect on 
June 12, 2003 but there is no evidence that it has 
contributed to the effort to combat corruption. 
It includes articles on public and private sector 
corruption, combating economic crimes, criminal 
responsibility of public officials, active and 
passive corruption, and trade of influence.  These 
additions put the legislation more in line with 
international anti-bribery standards by 
criminalizing the act of offering a bribe.  Under 
this definition, the act of promising, offering or 
giving a bribe to a "person of responsibility," 
i.e., a public official, is a crime. 
 
¶68.  Both offering and accepting a bribe are 
criminal acts. A bribe - whether to a foreign 
official or not - is a criminal act and is not 
deductible for tax purposes. 
 
¶69.  The penalties for offering and accepting a 
bribe are included in two articles of the Criminal 
Code.  Offering a bribe is punishable by up to 
three years imprisonment or by a fine of 10,000- 
20,000 lei (approximately USD 1,000-2,000); if 
repeated, the penalty is up to five years 
imprisonment or a fine of 20,000-40,000 lei (USD 
2,000-4,000); and offering a large bribe for the 
benefit of a criminal organization is punishable 
by 5-10 years imprisonment. 
 
¶70.  Accepting a bribe is punishable by up to five 
years imprisonment or by a fine of 10,000-30,000 
lei (USD 1,000 3,000); if the offense is repeated, 
the penalty is 5-10 years imprisonment or a fine of 
20,000-60,000 lei (USD 2,000-6,000); and for accepting 
a large bribe in the interest of a criminal 
organization, the punishment is 7-15 years 
imprisonment. 
 
¶71.  Several international and local organizations 
in Moldova work on combating corruption.  In 
December 2006, the Republic of Moldova and the 
United States signed a USD 24.7 million Millennium 
Challenge Corporation (MCC) Threshold Country 
Program (TCP) agreement aimed at reducing 
corruption.  Moldova's MCC TCP program focuses on 
persistent corruption in the judiciary, the health 
care system, and the tax, customs and police 
agencies. 
 
¶72.  The Project against Corruption, Money 
Laundering, and Terrorism Financing in the 
Republic of Moldova (MOLICO) - was signed in July 
2006 between the Council of Europe, the European 
Commission, and the Swedish International 
Development Cooperation Agency.  The MOLICO 
project is aimed at ensuring the implementation of 
Moldova's anti-corruption strategy on the basis of 
annual action plans and strengthening the anti- 
money laundering/counter- terrorist financing 
system of Moldova.  While the MOLICO project has 
been active in conducting training and supporting 
anti-corruption legislation, concrete results in 
the fight against corruption are not apparent. 
 
¶73.  Moldova is not a signatory of the 
Organization for Economic Cooperation and 
Development (OECD) Convention on Combating 
Bribery.  However, Moldova is part of two regional 
anti-corruption initiatives: the Stability Pact 
Anti-Corruption Initiative for South East Europe 
(SPAI) and the Group of States against Corruption 
(GRECO) of the Council of Europe.  Moldova 
cooperates closely with the OECD through SPAI, and 
with GRECO, especially on country evaluations.  In 
1999, Moldova signed the Council of Europe's 
Criminal Law Convention on Corruption and Civil 
Law Convention on Corruption.  Moldova ratified 
both conventions in 2003. 
 
¶74.  The U.S. Embassy has received reports that 
corruption and bribery are serious problems for 
foreign investors.  For example, when a foreign 
investor discovered that he had under-paid his 
taxes and wished to remedy the situation, the 
individual tax inspector assigned to the company 
attempted to extort money.  However, when the 
investor informed the tax administration of his 
error, the tax service lauded his self-reporting 
and negotiated a reduced payment.  In other 
situations, however, a foreign investor may be 
faced with the choice of either paying a bribe or 
leaving.  The Embassy has received reports of 
"informal" hostile takeovers of profitable 
businesses.  In these cases, business owners are 
approached by politically connected individuals 
who wish to acquire part of the business.  If 
business owners refuse, they may face harassment 
by tax, fire, sanitary and health inspectors. 
 
¶75.  According to Transparency International and 
an assessment of closed court cases, corruption is 
most pervasive in the following areas:  law 
enforcement, customs, taxation and regulatory 
system; the judicial system; the health care 
system; the educational system; government 
procurement and procurement in general; 
agricultural subsidies and social assistance. 
 
¶76.  Moldova's ranking in Transparency 
International's Corruption Perception Index 
steadily worsened from 2001, when it was ranked 63 
out of 91 countries, to 2004, when it ranked 116 
out of 145 countries.  In 2006, Moldova ranked 81 
out of 163 countries surveyed, but slipped in 
2007, dropping to 113 out of 80 countries.  In 
2008, Moldova ranked 109, behind such countries as 
Belize, Armenia, Tanzania and Rwanda.  According 
to surveys conducted in 2006, about one third of 
Moldovan firms admit that they frequently pay 
bribes. 
 
Bilateral Investment Agreements 
------------------------------- 
 
¶77.  Moldova has signed bilateral investment 
protection and promotion agreements with 35 
countries, including Albania, Austria, Azerbaijan, 
Belarus, Belgium, Bosnia and Herzegovina, 
Bulgaria, China, Croatia, the Czech Republic, 
Finland, France, Georgia, Germany, Greece, 
Hungary, Israel, Italy, Kuwait, Kyrgyzstan, 
Latvia, Lithuania, the Netherlands, Poland, 
Romania, Russia, Slovenia, Spain, Switzerland, 
Tajikistan, Turkey, Ukraine, the United Kingdom, 
the United States, and Uzbekistan. 
 
¶78.  Moldova has a bilateral treaty with the 
United States on the Encouragement and Reciprocal 
Protection of Investment, but does not have a 
bilateral taxation treaty with the United States. 
 
OPIC and Other Investment Insurance Programs 
-------------------------------------------- 
 
¶79.  In 1992, the Moldovan and U.S. governments 
signed an investment incentive agreement that 
exempts OPIC from Moldovan taxes on loan interests 
and fees.  The Overseas Private Investment 
Corporation (OPIC) became active in Moldova in 
September 1997, providing political-risk insurance 
to an American company investing in an 
agribusiness.  In 2002, OPIC provided nearly USD 1 
million in political-risk insurance to two U.S. 
companies operating in the telecommunications and 
agricultural sectors.  In 2004, OPIC extended a 
USD 150,000 loan to a New York-based small 
telecommunications business.  In 2005, OPIC closed 
on a USD 3.0 million loan to Procredit, a 
microfinance institution providing loans to small 
businesses in Moldova.  In 2007, OPIC committed 
USD 10 million in financing to a U.S. company to 
support the expansion of its agribusiness 
operations. 
 
¶80.  The U.S. Export-Import Bank (Ex-Im) provides 
U.S. companies investing in Moldova short- and 
medium-term financing in the private sector under 
its insurance, loan and guarantee programs.  In 
2000, the Ex-Im Bank and Moldova signed a 
Framework Guarantee Agreement setting the terms 
for the GOM to issue sovereign guarantees to 
facilitate Ex-Im Bank financing of U.S. exports to 
Moldova.  Also in 2000, the Ex-Im Bank and Moldova 
signed a Project Incentive Agreement that enabled 
the Bank to consider financing of U.S. exports for 
credit-worthy private sector projects in Moldova 
on a non-sovereign risk basis, but which required 
host-government support in project-related 
activities such as permit and license approvals. 
Under the agreement, repayment of Ex-Im Bank 
financing is based on the capture of financed 
projects' revenue streams in special escrow 
accounts held in banks approved by the Ex-Im Bank. 
 
¶81.  In 2002, the Ex-Im Bank signed a memorandum 
of cooperation with the Black Sea Trade and 
Development Bank.  Under the memorandum, the Ex-Im 
Bank's financing products can be used to support 
exports of U.S. goods and services to any country 
located in the Black Sea region, including 
Albania, Armenia, Azerbaijan, Bulgaria, Georgia, 
Greece, Moldova, Romania, Russia, Turkey and 
Ukraine.  The agreement enables the Black Sea 
Trade Development Bank to act as a guarantor of 
specific transactions and also provides for 
parallel financing arrangements. 
 
¶82.  Moldova is eligible for U.S. Trade and 
Development Agency (USTDA) funding of feasibility 
studies, orientation visits, specialized training 
grants, business workshops and other forms of 
technical assistance.  USTDA considers funding for 
a wide range of sectors with export potential for 
U.S. companies.  In 2003, USTDA approved funding 
for a study on upgrading the telecom system for 
the Moldovan Customs Service. 
 
¶83.  Institutions such as the European Bank for 
Reconstruction and Development and the World Bank 
are very active in Moldova in both the private and 
public sectors, offering various financial tools 
for both insurance and credit.  Moldova is a 
member of the Multilateral Investment Guarantee 
Agency.  Moldova is also eligible for project and 
trade financing from the Black Sea Trade and 
Development Bank. 
 
Labor 
----- 
 
¶84.  Skilled labor is readily available in 
Moldova, which has an adult literacy rate of 99.1 
percent.  The labor force includes numerous 
workers with specialized and technical skills. 
Labor migration has led to some shortages of 
workers in the agricultural and construction 
sectors.  The Moldovan constitution guarantees all 
employees the right to establish or join a trade 
union.  Trade unions have influence in the large 
and mostly state-owned enterprises and 
historically have been strong in negotiations on 
labor relations, such as minimum wage and basic 
worker rights.  Unions are less active in small 
private companies.  Moldova is a signatory to 
numerous conventions on the protection of workers' 
rights. 
 
¶85.  The Moldovan General Federation of Trade 
Unions has been a member of the ILO since 1992, 
and is also affiliated with the International 
Confederation of Free Unions in Brussels since 
¶1997.  After the Federation split into two 
separate unions in 2000, the two merged in 2007, 
forming the National Trade Union Confederation. 
 
Foreign Trade Zones/Free Ports 
------------------------------ 
 
¶86.  One of the GOM's stated economic policies is 
the creation and development of free economic 
zones (FEZ).  At present, six FEZs and one 
international free port Q Giurgiulesti Q are 
registered in Moldova.  According to Moldovan law, 
export-oriented production is the main goal of 
such zones.  FEZ commercial residents are allowed 
to sell no more than 30 percent of their products 
in Moldova.  FEZ activity is regulated by the Law 
on Free Economic Zones (2001).  Foreigners have 
the same investment opportunities as local 
entities.  FEZ commercial entities enjoy the 
following advantages:  25 percent exemption from 
income tax; 50 percent exemption from tax on 
income from exports; for investments of more than 
USD 1 million, a three-year exemption from tax on 
income resulting from exports, and for investments 
of more than USD 5 million, a five-year exemption 
from tax on income from exports; zero value-added 
tax; exemption from excises; and protection of 
commercial residents against any changes in the 
law for 10 years.  The GOM announced the 
establishment of three industrial parks in 2008, 
but their actual operation has not yet begun. 
Businesses operating in industrial parks would not 
enjoy special fiscal treatment, but would have 
access to ready-to-use production facilities and 
offices. 
 
¶87.  Similar to the FEZs, the Giurgiulesti Free 
International Port was estaQished in 2005 for 25 
years.  Commercial residents of the port enjoy the 
following advantages:  25 percent exemption from 
income tax for the first 10 years following the 
first year when taxable income was reported; 50 
percent exemption from tax on income for the 
remaining years; exemption from value-added tax 
and excises on imports and exports outside 
Moldova's customs territory; zero valued-added tax 
on imports from Moldova; and protection of 
commercial residents against any changes in the 
law until February 17, 2030. 
 
Foreign Direct Investment Statistics 
------------------------------------ 
 
¶88.  As of January 1, 2008, the total stock of 
foreign direct investment (FDI) inflows in Moldova 
since independence amounted to USD 1,812.8 
million, according to the National Bank of Moldova 
(NBM). 
 
¶89.  According to NBM data, annual FDI inflows (in 
million 
USD) to Moldova have increased steadily over the 
past several years:  262.84 (2005); 368.12 (2006); 
537.68; and 362.19 (Jan-Jun 2008). 
 
¶90.  FDI by country in 2007, according to NBM data 
and based on charter capital (in million USD) was 
as follows: 
Italy 37.22 
Romania 22.16 
United States 20.28 
Netherlands 17.80 
France 17.50 
Austria 16.36 
Cyprus 15.71 
Germany 14.00 
Ukraine 13.08 
Switzerland 10.18 
Other countries 52.28 
 
¶91.  According to the NBM, the stock of FDI 
inflows (in million USD) by country of origin for 
the ten largest investing countries for the period 
1992 to 2007 was: 
¶1. Russia 154.08 
¶2. United States 102.16 
¶3. Italy 91.30 
¶4. Spain 82.57 
¶5. Netherlands 80.12 
¶6. France 79.00 
¶7. Romania 60.14 
¶8. Germany 50.64 
¶9. Austria 35.20 
¶10. Cyprus 27.54 
 
¶92.  Based on figures from the National Bureau of 
Statistics, FDI since 1992 by sectors was as a 
percentage of total FDI: 
--Food processing:  24.6 percent 
--Electricity, gas and water supply:  23.3 percent 
--Financial activities:  19.3 percent 
--Wholesale, retail & repair services:  17.9 
percent 
--Real estate transactions:  5.4 percent 
--Transportation and communications:  4.9 percent 
--Hotels and restaurants:  2.1 percent 
--Other activities:  2.5 percent 
 
¶93.  According to NBM data, at the end of 2007, 
Moldova's direct investment abroad since 
independence amounted to USD 41.18 million. 
 
¶94. In 2007, FDI inflows were 12.9 percent of 
annual GDP (USD 4.398 billion). 
 
¶95.  Major U.S. investors or representatives of 
U.S. companies in Moldova include: 
- NCH Group of Investment Funds:  real estate and 
financing companies; 
- Horizon Capital:  equity investment fund 
managing the investments of Western NIS Enterprise 
Fund (which is phasing out its local activity) and 
the recently Emerging Europe Growth Fund with 
holdings in banking, food processing and glass 
manufacturing; 
- McDonald's:  fast food; 
- Coca-Cola:  soft drinks; 
- Foodpro International:  food processing; 
- Development Group USA:  food processing, wine 
and media; 
- Lion Gri:  wine; 
- Transoil Ltd.: f arming, agribusiness and grains 
trading; 
- Mary Kay:  perfumes and cosmetics; 
- Avon:  perfumes and cosmetics. 
 
CHAUDHRY