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From 2020 to 2023, the real estate market in Moldova will experience significant growth, with prices increasing by around 30% on average and even more for new builds (40-50%). Moreover, the average public income per capita will increase from 8,860 MDL at the end of 2020 to 13,400 MDL in the fourth quarter of 2023. Despite the negative growth of GDP in 2020, Moldova's GDP will show impressive growth, increasing from 11.53 billion USD to 14.78 billion USD in 2023.
assignment
A key aspect of entering the Moldovan market is having partners and shareholders operating in that market. After partnering with Kirsan in 2020, we published a comprehensive review and market outlook for the Moldovan market, economy and new President Maia Sandu. Now, re-evaluating the situation, we see that our fundamental outlook was largely correct. However, some unforeseen challenges related to the country's legal system have arisen, affecting projects in Moldova (and other countries) and our investors.
Legal proceedings
After the companies linked to Kirsan fulfilled their obligations, did not fulfill their promises, moved their offices to the small city of Báltsi, 140 km from Chisinau (address: Báltsi, Sfântul Nicolae street 112) and started accelerated debt restructuring procedures the next day, we have had the debts to investors proven and confirmed by the court in all proceedings opened on behalf of indebted companies, as is expected in the modern world and in democratic countries.
Despite our efforts to seek a resolution through legal means, we faced questionable decisions by the courts and the bankruptcy trustee, but we escalated the matter to other authorities, including Moldova’s anti-corruption agency.
We are encouraged that a young, dynamic and promising researcher, Mr. Victor Hromsach, has been appointed to lead the study. Our representatives met with him, provided him with information and details and received positive feedback.
Positive change
When Maia Sandu took office in 2020, a central goal and promise of her election campaign was to reduce (if not eradicate) corruption in the country and move it towards EU integration in the near future. We expect that the ongoing investigations and the authorities' keen attention to this issue will help investors and make the country a better place to invest. We are hopeful that the ongoing investigations and the authorities' keen attention to this issue will produce a positive outcome for investors and contribute to a favourable image of the country itself and a more favourable investment climate.
We remain committed to transparency and are committed to working diligently to resolve the challenges facing our project in Moldova, and we thank our investors for their continued support and understanding as we navigate these complex situations.
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