Ranked fifth among 184 countries surveyed under the Banker's 2009 World Financial Health Index, Moldova might well claim that its financial sector is healthy and thus interesting for potential investors. During 2008 the Moldovan banking system continued to achieve a high capital adequacy ratio (32%), low level of lending (35% of GDP), high returns (a return on equity of 20%) and steady growth of banks' assets (up 23%). The same positive trend was followed by the insurance and leasing sectors. High investment returns combined with a stable legal and regulatory environment has put Moldova on the expansion maps of important EU and other foreign investors.
Internationalist firms such as Turcan & Turcan and the younger Gladei & Partners lead the way in the banking and finance arenas of Moldova, with Turcan & Turcan maintaining top spot for experience and expertise.The firms both act for some the most important clients in the market: the European Bank for Reconstruction and Development (EBRD), the Black Sea Trade and Development Bank (BSTDB), the European Investment Bank (EIB) and the World Bank....
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Internationalist firms such as Turcan & Turcan and the younger Gladei & Partners lead the way in the banking and finance arenas of Moldova, with Turcan & Turcan maintaining top spot for experience and expertise.
The firms both act for some the most important clients in the market: the European Bank for Reconstruction and Development (EBRD), the Black Sea Trade and Development Bank (BSTDB), the European Investment Bank (EIB) and the World Bank.
Incumbent local firms, which have been operating in the market for up to ten years, still have extensive networks and local expertise, although they may need to develop if Moldova begins to fulfil its potential. "It is not a very developed market and you see big transactions being dealt with by solo practitioners," says one local peer.
The recent parallel phenomena of highly disruptive and contentious elections and the global financial slow down have checked a certain growth say peers.
The country maintains a 0% corporate tax rate and, as one lawyer says: "It is not a very big country but there are four million people and it is a market you want to look at; there is a lack of everything here and you can still conquer the market at a low cost as assets as so cheap."
Additionally, say peers, Moldova has a good relationship with the EU and it is perceived to have a skilled, educated and low paid workforce, which is helping to attract the attention global investors. Especial interest has come from Romania and Germany, investors in Greenfield production developments, car parts manufacturing, real-estate, infrastructure and Moldova's highly regarded wine industry.
Driven by client demand, international firms Schoenherr and Vernon David & Associates recently raised their profiles in the country.
[Read about law firms' performance in this practice area]
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