Moldova’s Parliament backs higher SME thresholds at first reading
Moldova’s Parliament has voted at first reading for a bill that would raise the financial thresholds used to classify small and medium-sized enterprises. The proposal would lift the annual turnover ceiling from €25 million to €50 million and the total-assets threshold from €21.5 million to €43 million. The vote is a legislative step rather than final approval: the bill must return to Parliament for a second reading before it could become law.
The measure was presented as part of an effort to bring Moldova’s SME framework closer to European standards. Parliament said the higher limits and an updated classification method could allow a further 147 businesses to fall within the SME category, subject to the rules in the eventual law. That could matter because a company’s classification can determine whether it is eligible for particular support programmes and financing instruments.
Higher limits, but no immediate change
The proposed figures are not new limits already in force. Until the bill completes the legislative process and the relevant provisions take effect, businesses remain subject to the existing framework. The distinction is important for companies planning investment, borrowing or applications for support: a first-reading vote signals Parliament’s direction, but it does not itself alter a firm’s legal status.
The bill would also bring more detailed European-style rules into the assessment of a business’s size. The Government said the approach would cover autonomous, partner and linked enterprises, taking ownership and control relationships into account where relevant. The aim is to make a company’s classification reflect its economic scale more accurately, rather than looking only at one legal entity in isolation.
That part of the proposal is intended to ensure that programmes aimed at smaller businesses reach firms that meet the definition, while making the assessment clearer for companies operating within wider groups. The precise effect on an individual business would depend on the final wording of the law and on the criteria of any particular programme.
A new category for growing companies
Another element would establish a small mid-cap category for companies that have grown beyond the SME thresholds but are not yet treated as large enterprises. Under the present framework, Parliament said the classification system recognises micro, small and medium-sized enterprises, with no intermediate category before a business is placed among large companies.
Lawmakers said that abrupt change can affect incentives to expand and invest, because firms crossing the current limits may lose access to facilities designed for SMEs and face different administrative requirements. The proposed category is intended to provide a more gradual transition. It would create a legal category, however, not an automatic support package. During the parliamentary discussion, the Ministry of Economic Development and Digitalization said no dedicated programmes for small mid-caps are planned for the current or following year because of budget constraints.
Export finance framework proposed
The bill also sets out a framework for supporting export finance. It would permit tools including guarantees or insurance for export credits, direct financing or refinancing of such credits, and measures to support interest costs. The Government has said those options are designed to broaden funding routes for businesses and reduce exclusive reliance on bank lending.
For exporters, the proposal addresses a familiar timing issue: a business may have to pay for production and delivery before receiving payment from an overseas buyer. The framework could allow future schemes to address financing and non-payment risks in that period. It does not mean that a new guarantee, insurance or lending programme is available now; the bill creates the proposed legal basis, while practical schemes would still require implementation and funding.
SMEs are a significant part of Moldova’s economy. Parliament said they account for 99.7 per cent of businesses and generate more than 72 per cent of national turnover. The second-reading process will therefore determine whether the proposed thresholds, classification changes and export-finance provisions move from a policy plan into the country’s operating rules for business.
