OREANDA-NEWS. March 29, 2008. The applications for the reception of the grant within the fourth tranche of the program of small and medium-sized business development, rendered by the government of Japan, will be accepted since March 31 up to May 17.

This was announced by the Vice-Minister of Economy and Trade Viorel Melnic during the briefing devoted to implementation of the programme. As it was informed before, on March 5, the agreement between the governments of Moldova and Japan for the fourth tranche of \\$ 300 million yen (\\$ 3 million) had been signed.

The program should assist small and medium-sized enterprises in acquiring equipment.

Equipment is acquired through leasing for one year period loan free on a zero interest rate. New equipment is imported customs duties, customs procedures and VAT free. The cost of equipment is returned in several tranches, with the advance payment of 25% of the cost. In case if beneficiary returns 60% of the cost during the year, 40% are covered by the grants.

Money for equipment, paid by economic agents, is distributed to the special fund for creation of the new grant. All purchases under the program are executed by the British agency "Crown Agents". According to Melnic, minimum amount of the grant under the fourth tranche will make \\$ 48 thousand, maximum - \\$ 233 thousand.

Within the first tranche of \\$ 300 Million Yen (\\$2,52 million), equipment for total amount of \\$ 2,52 million was provided to 18 recipients. The second tranche of \\$ 400 million yen (\\$ 3,36 million), granted in March 2006, provided equipment worth \\$ 3,15 million to 25 companies. The third grant in the amount of 300 million yen (\\$ 2,52 million) covered 27 enterprises.

Till March 2008, they conclude contracts for delivery of equipment worth \\$ 3,42 million. As the executive director of division for implementation of this programme Tudor Copaci announced, businesses, which used the grants, had been able to improve their financial performance. In particular, the increase in net sales of the companies amounted to 27%, profits grew by 122%, and net assets by 300%, respectively.

Replying to the journalists' questions on accessibility of grants, Copaci said that claimants should present well-reasoned business plan and correspond to all requirements. Priority will be given to economic entities from the regions of the country, in particular rural areas. In addition, the preferences will be given to the companies stimulating export or import substitution.

As Viorel Melnic stressed, Moldova is the only country which was able to use Japanese grants to full extent.