by World Citizenship Council (WCC)
Moldova may well be losing out billions of euros for foreign investment and construction of several five star hotels funded by CBI by suspending the new citizenship by investment scheme. The CBI scheme was temporarily suspended until the new government examines backgrounds of agents and applicants.
While Malta and Cyprus have etched their success stories raising billions from CBI schemes, Moldova within just seven months of launching the scheme, the new government has decided to temporarily suspend the scheme on Jul 19 until further notice.
The MCBI program expected to bring significant sovereign and social benefits for Moldova and its people with increased FDI inflows, strengthening and diversifying the economy, creating new and secure jobs for the Moldovan people, with positive impact.
Moldova will also miss out on the great opportunity to revive real estate market opening up for foreigners. Already, the citizenship scheme fueled construction first major hotel project , a brand new Radisson hotel with 450 rooms planned for construction in Chisinau for opening in 2021. Foreigners who buy hotel rooms in this development, were eligible for citizenship.
The Moldovan citizenship by investment scheme launched in Nov 2018 by the previous government, expected to raise €1.3 billion euros over the next 5 years. The scheme proposed issuing citizenship for investments for 5000 investors which required €100,000 donated to public fund of government, or €250,000 in real estate or purchase of Govt securities .
Some 34 files have been submitted for CBI scheme, pending processing and 2 citizenships were granted so far.
“We will move on or off with this program – we will make the decision after we clarify with all the details. But today, it is suspended, ” said President of Moldova, Igor Dodon.
As of today, total of 9 citizenship agents have been approved by CBI unit under MCBI.
The Due diligence and vetting process employed by Moldova is considered to be the worlds’s best standards at par with Malta and Cyprus, to attract foreign investors with business acumen, skills, talent and successful people to the country and despite this the scheme is not moving forward. The CBI scheme presents an excellent opportunity for Moldova to open up for foreigners.
The New Economics and Infrastructure Minister Vadim Branzan has earlier said that Moldova would have to pay damages, if it cancels the contract citizenship scheme programme to companies and agents, in addition to the loss of economic benefits.
Moldova still remains Europe’s poorest nation with per capita incomes half that of Albania which is at $7700 (2018) with a population of approx 3 million residents.
Moldova actively pursues EU membership. Relations between the European Union and the Republic of Moldova (hereinafter “Moldova”) have intensified in the past years. Since 28 April 2014, Moldovan citizens with a biometric passport can travel to the Schengen area without a visa. In the period from April 2014 to April 2018, more than 1.4 million Moldovan citizens have benefitted from the visa-free regime.
Still the country does not have visa free access to United Kingdom or Canada but has E-2 treaty signed with United States in 1994.
Montenegro on the other hand opened special investor citizenship scheme along with Moldova in 2018 has great visions for the future to develop the Northern parts of country through the inflows of foreign investments.
World Citizenship Council (WCC) recommends new government to weigh in all benefits, carefully evaluate all options including economic/social benefits brought by CBI to people and carefully evaluate all options before deciding to repeal the scheme. Malta and Cyprus have proved it already leading the CBI industry from the front! Moldova needs investment and should not lose out on this one time opportunity.
WCC along with entire CBI industry will monitor new developments in Moldova related to citizenship scheme.
The World Citizenship Council (WCC) is a non-profit startup launched in 2018 for research and development of the Citizenship and residence by investment (CRBI) schemes with citizenship firms and experts in the industry as members. Registration for council membership is free.
