The capital market in Moldova has potential for development in the conditions where the country will continue to improve macroeconomic perspectives, continue to strengthen the legal framework and support the diversification of the investor base. The finding comes as a result of the Capital Market Diagnostic, developed by the USAID Moldova Institutional and Structural Reform Activities Program and presented at a round table organized by the National Financial Market Commission (CNPF).
According to the CNPF, the development of the capital market is essential for the economic growth of the country by diversifying the financing possibilities for both the state and the private sector, providing access to internal and external financial resources. Currently, the macroeconomic conditions in the country are favorable for the expansion of the capital market, but to fully achieve this potential, a stable economic and political framework is required. Also, measures are needed to strengthen the infrastructure of the capital market and stimulate the demand and supply of financial instruments, increasing the degree of financial knowledge and investment education of the population.
At the same time, the significant increase over the last four years in the volumes of private individuals' deposits indicates the lack of investment alternatives for the population. Supply in the capital market, through instruments such as stocks and bonds, is limited. Policies to promote the mobilization of savings, such as the development of the private pension system, the encouragement of private investment and the improvement of the business environment would stimulate domestic capital formation and sustainable economic growth.
The consolidation of the state bond market in Moldova is also crucial for the development of the capital market. In recent years, the government bond market has undergone essential changes. The participation of non-bank investors (individuals, legal entities and non-residents) increased in 2022-2023. The share of non-bank investors in the government securities market reached 30% in 2022, with a decrease of 6 percentage points in 2023.
Corneliu Rusnac, USAID Moldova’s senior program manager, said that the capital market is an essential pillar for the country’s economic stabilization by diversifying available investment options, reducing dependence on external shocks and increasing the country’s economic resilience. He also said that the results of the presented diagnosis confirm the interest in investment alternatives and the necessary conditions for the growth of the capital market.
