The geographical situation, the favourable climactic conditions, and the skilled labour force of our Republic permits foreign investors to extend their activity in all branches of the national economy. We are aware that investment resources are the main components for the reconstruction of the national economy. Moreover, they are the premise for the re-launching of production and for the amelioration of the social environment.

The investment shortage particularly reflects the Gross Domestic Product (GDP) stagnation during the last few years, as well as the improving fiscal policy expressed by a stable exchange rate of the national currency, up to 11,2 per cent of the reduction of inflation, and the 20-24 per cent decreasing credit rate in 1997.

In the Republic of Moldova there are 1019 enterprises with foreign investments. These include 303 enterprises whose foreign capital constitute 100 per cent. These enterprises produce approximately ten per cent of the country's products and services.

The main investments are directed towards the agro-industrial sector and services, especially for small and medium-sized enterprises. Of strategic importance is the country's investment in producing equipment, cement and gypsum, and the construction of infrastructure objects - the Danube's terminal, the Chisinau airport, electrifying the railway, and the re-construction of the highways.

We also have programmes for public investments (constructions, electroenergetics etc) for the period 1998-2000.

Concrete results may be observed after the realisation of the Concession Agreements. The same may be said regarding the re-technologising of leasing enterprises.

The state policy in privatisation is oriented towards:

• the consolidation of the juridicial basis of property reformation;
• the creation of capital market as a means of privatisation against money;
• the amplification of property and the creation of a new civil and penal code;
• and the corresponding system of normative acts.

Since 1 January 1998, Moldova has had a new treasury system. In the near future it will place ten territorial treasury objects.

In April 1997, following a Parliament decision, fiscal reforms to stabilise the general principles of a taxing system were adopted.

On 1 January 1998, a new taxation system was adopted. During this year other new titles of fiscal code will be introduced.

Beginning with 1 January 1998, Moldovan accounting turns to a new accounting and reports system, with the gradual implementation of the national accounting standards.