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FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2010MOLDOVA STOCK EXCHANGEECONOMIC AND POLITICAL DEVELOPMENTSTotal basic policy of 2009 is the cardinalchange of power in the country, which hascaused essential changes in state policy bothinternal and external.The four parties (Liberal Democratic Party,Liberal Party, Democratic Party, and OurMoldova Alliance) founded the Alliance forEuropean Integration. The Alliance forEuropean Integration became the rulingcoalition and the communists - opposition. Thenew governing coalition in Moldova has setEuropean integration as its main priority offoreign policy.In 2009, in the capital of our country took placeCIS summit in which representatives of the newgovernment met with the politicians fromneighboring countries. The theme of thesummit was the economic crisis and thestruggle with its consequences.The crisis came from abroad, and for thecountry vulnerable to external shocks, such asthe Republic of Moldova, recession economyhas became a crucial factor which has causedthe change of the economic growth’s trendsince the end of 2008. But despite the fact thatsince the second half of 2009 seen the firstsigns of global economic recovery thanks tothe efforts undertaken by world’s governments,the beneficial effects of these global trends onthe economy of the Republic of Moldovabecomes apparent later.The European Union and Moldova launchedofficially negotiations on a new AssociationAgreement. These negotiations reflect thepositive evolution of political and economicrelations between the EU and Moldova, andthe opportunity to widen and deepencooperation under the Eastern Partnership.The future agreement will deepen the politicalassociation and economic integration ofMoldova and the EU. These negotiations takeplace against the background of increasingbilateral trade over the past years and asignificant increase of EU assistance toMoldova.Moldova and International Monetary Fund (IMF)officials have signed an agreement for a loanthat will help to cover the budget deficit.Involvement in the national economy ofstrategic investment, particularly foreign directinvestment in sectors characterized by highlevels of competitiveness and oriented onexport, including through the development ofrelated infrastructure (industrial parks, freeeconomic zones) is one of the prioritiesestablished by the Ministry of Economy for2010. The other priorities are: beginning theprocess of negotiating a new regime with theEU concerning free trade agreement, thedevelopment of a legislative framework forconsumer protection and supervision over themarket, harmonized with European legislation,improving the system of business regulation,development of credit guarantee schemes forsmall and medium-sized enterprises,promotion of the small and medium-sizedenterprises to provide new opportunities andachievement of a greater ability of theeconomic system to adapt to the currentrequirements of a market economy.** Information provided by Moldova SE.Key Information ContactsGovernment of the Republic of Moldova www.gov.mdMinistry of Economy www.mec.gov.mdPublic Property Agency www.app.gov.mdNational Bank of Moldova www.bnm.orgNational Commission of Financial Market www.cnpf.mdChamber of Commerce and Industry www.chamber.mdNational Bureau of Statistics www.statistica.mdREAL GDP(MDL millions)CONSUMER PRICES (% CHANGE PA; AV)(%)3025201510502005 2006 2007 2008 2009 2010141210864202005 2006 2007 2008 2009 2010PAGE 118