An historic step forward for Moldova – the first issuance of a 5-year Bond


On the 28th of March, the Government of Moldova issued its first medium-term Government Security – a 5-year Bond. This has particular significance because it comes after the very recent unprecedented crisis caused by massive fraud and the failure of the three major banks in late 2015.

What does this mean for Moldova? Extending the maturity of Government Securities is an immediate signal by the financial market that the economy is doing better, that there is prospect. Many did not believe this would happen so soon after the crisis but it has. It has not been an issue of a large volume but the fact that it happened is as symbolic as it is meaningful. In simple terms, if investors are willing to place their money (and trust) with the Government for a period of 5 years (and for the first time ever as it is the case in Moldova) this is a good sign. For some this has actually been quite a leap of faith by the local banks and investors that subscribed to the 5-year Bond given that the Moldovan Government Securities market is very narrow and the secondary market practically inexistent – the secondary market is very important because this is where investors can sell their bonds to realise a return or if they need cash. Those who invested, however, have read the signs. Things are changing and steps are being made to modernise and expand the Moldovan Government Securities market. And, as the experience of the last two decades in the EU and other countries shows, the financial market is a necessary condition to fuel the real economy.

What does this mean for us at 4Assist? Other than the sense of accomplishment, it is a confirmation that the hard work and perseverance of a small team of dedicated people can bring about significant change. As 4Assist, we are proud to have contributed to this positive development for Moldova. We are also privileged to have assisted in an effective manner our hard-working and dedicated Moldovan Ministry of Finance colleagues.

Ultimately, it confirms our saying since our shy beginning sometime in 2007…we don’t do many things but what we do, we do well…