OREANDA-NEWS. August 15, 2014. In 2006 through 2013, Moldovan winemakers’ annual financial flows dropped by 373.5 million lei, the National Vine and Wine Office has reported.

The Office examined the financial condition of 18 leading wine companies, which account for some 80% wine exports to Russia, and revealed that their current drastic condition is being aggravated inter alia by the need to service their bank credits totaling 1.1 billion lei (some USD80.8 million).

The researchers revealed that in the period concerned, the companies’ negative operational result was somehow compensated for with a higher net flow of credits and loans that totaled 472.8 million lei.

In this connection, the winemakers are requesting the Government to interfere so as to help improve the companies’ financial condition. They are proposing measures which they believe can give both direct and indirect effect and thus soften up the consequences of the Russian embargo and improve the paying ability of this economy sector.

These measures include: the establishment of a special Fund for restructuring winemakers’ credits taken from domestic banks; subsidizing of interest rates on companies’ credits; investment into the post-harvest infrastructure and harvest processing; easing up of crediting conditions and the introduction of leasing within the framework of the Filiera Vinului project [financed by the European Investment Bank (EIB)]; establishment of an export security fund; lifting of restrictions on the advertising of wine produce; imposition of restrictions on the promotion and consumption of other alcoholic beverages in Moldova.

Infotag’s dossier: The analysis of the wine sector’s financial condition due to the Russian embargo was carried between July 2013 and August 2014.