FACEM Investments

I. The financing instrument is the credit granted by the EFP to the beneficiaries (also called investment credit) from the financial means of FACEM, in national currency for the following purposes: 

1. procurement of equipment and machinery, including installation, calibration, commissioning, logistical and certification services and costs;
2. procurement, construction and/or reconstruction/repair of premises including ancillary facilities, with associated land;
3. procurement of digital technologies and software;
4. procurement and/or establishment of multiannual plantations.

II. An applicant may apply for more than one loan, provided that the maximum funding ceiling set out in this document, consisting of the balance of the existing loan(s) and the amount of the new loan requested, is not exceeded.

Applicants must meet the following general eligibility criteria:

1. is registered in the State Register of Legal Entities of the Republic of Moldova and is not in the process of insolvency, reorganisation or liquidation;
2. it does not have registered beneficial owners and/or residents of jurisdictions that do not implement international transparency standards established under the regulations of the supervisory authority as well as the Money Laundering Prevention and Control Service. For the purposes of this paragraph, the notion of "beneficial owner" set out in Article 3 of Law No. 308/2017 on preventing and combating money laundering and terrorist financing shall apply;
3. has no arrears to the national public budget at the date of signing the credit agreement with the EFP.

Applicants must meet the following specific eligibility criteria:

1. is the MSE classified under the conditions laid down in Article 4(1) of Law No 179/2016 on small and medium-sized enterprises and does not fall under Article 12(3) of that law;
2. the own contribution is at least 10% of the value of the investment project at the date of submission of the application according to item 15.

EFPs - banks and non-bank lending organisations that have applied for funds under the FACEM financing products, which have been evaluated and contracted by the ODA.

EFPs can become commercial banks and non-bank lending organisations that meet the eligibility criteria, accept the terms of the Financing Product and comply with the terms of the collaboration contract with ODA.

1. The purpose of the investments, according to the applicant's investment project and the financing contract signed by the VET, shall be in one or more economic activities, taking into account the provisions of sub-paragraph (3), except for those included in the list of activities in the Moldovan economy set out in the Annex.
2. When assessing the purpose of the credit for which the financing is granted, the activity in which the investment is directed shall be taken into account, according to sub-paragraph (1), which does not necessarily correspond to the basic field of activity of the applicant.
3. The FACEM financial means granted in the sector classified under the code of Section G. "Wholesale and retail trade; maintenance and repair of motor vehicles and motorcycles" , except those indicated in the Annex, shall not exceed the limit of 30% of the FACEM financial means available.
4. The ODA will monitor compliance with the limit set out in sub-paragraph (3), and if it is found that the limit has been reached or exceeded immediately, the ODA will not allocate additional funds from the EMCF to the LFS in the relevant sector, except for credit files under consideration by the LFS, and will inform the LFS thereof within 5 working days of the date on which it is found that the limit has been reached or exceeded.
5. The interest on the credit granted within the framework of the investment project cannot be compensated from the account of the financial resources credited by the state, state programmes and/or external financial assistance projects. 
6. The investment project may be the object of ODA guarantee products, if the guarantee request meets the criteria and requirements of the guarantee products.

The financial resources of the Financing Product can be used to pay for the following goods and services necessary for the implementation of the applicant's investment project:

1. procurement of equipment and machinery, including services and costs of installation, calibration, commissioning, certification, including finished production and related logistics costs; 
2. procurement of digital technologies and software, including services and expenditure for their implementation;
3. the purchase, construction and/or reconstruction/repair of premises, including ancillary facilities, with the land relating thereto, as well as the cost of designing and commissioning the buildings and/or premises reconstructed as capital.
4. purchase and/or establishment of multiannual plantations.

1. The resources of the Financing Product may not be used for the following categories of expenditure/costs:

1. costs/expenditure of goods and services or the share thereof covered by other State programmes and/or external financial assistance projects, including own contribution;
2. exchange losses;
3. taxes and duties not included in the value of tangible and/or intangible fixed assets;
4. payments made in cash;
5. re-crediting, financing of leasing costs, including interest and commissions on loans, except those granted under the Financing Product by other LFS, provided that item 16 is complied with;
6. costs of renting or leasing premises/offices/land;
7. current assets, consumables, administrative expenses, except those involved in the installation of fixed assets financed from the Financing Product;
8. staff remuneration costs, except for the remuneration costs of staff involved in the construction and/or reconstruction/repair of premises and/or installation, commissioning of equipment/tools.

2. Pending disbursement of funds from the ODA, in order to streamline the financing process of the grant applicants' investment projects, the disbursement of funds from the VET's own resources account is allowed, with the application of interest rate according to the VET's policy, if stipulated in the contract signed by the applicant with the VET. Co-financing from the beneficiary's own financial resources by the VET, according to the policy of the VET, in order to provide the beneficiary with financial means to cover expenses that are not eligible under this Financing Product but are necessary for the realisation of the investment project is allowed.