Moldova Institutional and Structural Reforms Activity (MISRA) Year 2 / FY 2023 Quarterly Report (Q1)

The program is implemented by Nathan Associates Inc. and is scheduled to run from April 29, 2022, to April 29, 2027. Key achievements in the first quarter of year two (October 1 to December 31, 2022) include enhancements to the institutional capacity of key economic institutions, such as the National Road Transport Agency, the Moldovan Customs Service, and the National Food Safety Agency. These institutions have improved their regulatory requirements and practices, and digital solutions for e-government services have been supported. The program has also made progress in structural reforms to improve the trade and investment enabling environment. Task 2.1.1 aimed to reduce burdens and risks related to the state inspection and sanctioning system, while Task 2.1.2 focused on improving risk-based inspections. Additionally, Task 2.1.3 involved developing an impact assessment of draft regulations on small and medium-sized enterprises (SMEs), and Task 2.1.4 conducted an impact assessment of selected regulations on SMEs. In the area of customs procedures and processes, Task 2.2.1 identified opportunities for simplification of procedures related to customs control of expedited consignments, while Task 2.2.2 conducted a feasibility study of adopting an IT system for improving access to customs decisions for businesses. Task 2.2.3 assisted the Moldova Customs Service in increasing the effectiveness and efficiency of the customs clearance activity. The program has also made progress in improving transport and logistics efficiency and capacity. Task 2.3.1 conducted a transport and logistics diagnostic, while Task 2.3.2 increased transparency in calculating tariffs for transport. Additionally, Task 2.3.3 assisted in the procurement of weigh-in-motion equipment and the development of related regulations. In the area of financial sector reforms and inclusiveness, the program has strengthened the capacity of financial sector regulatory institutions, such as the National Bank of Moldova and the National Commission for Financial Markets. Task 3.1.1 improved the capacity of these institutions, while Task 3.1.2 increased opportunities and enhanced the ecosystem for fintech startups to establish and grow. The program has also made progress in improving access to financial services, with Task 3.2.1 expanding financial services with diversified investment products and Task 3.2.2 integrating Moldova into international capital flows to improve the private sector's access to international capital markets. Overall, the MISRA program has made significant progress in its first quarter of year two, with achievements in strengthening public economic governance institutions, improving the trade and investment enabling environment, and enhancing financial sector reforms and inclusiveness.