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EBRD signs its first project with Republic of Moldova
The Moldovan wine industry will receive a US$ 30 million (ECU 25.6 million) loan from the European Bank for Reconstruction and Development (EBRD) through an agreement signed today in Madrid. The loan is to Vininvest s.r.l, a specially created limited liability company in Moldova, which will channel and manage the loan to 10 selected leading wineries and a glass container company. Vininvest will also provide financial, management and marketing assistance to the participating wineries.
Mr Jacques de Larosière, President of the EBRD, said: "This is a very significant project, both for Moldova and for the EBRD. We are pleased that our first project in Moldova is in an industry with such great potential. This project could lead to the future privatisation of the industry".
Mr Andrei Sangheli, Prime Minister of Moldova said: "The Republic of Moldova is very pleased to have signed its first loan with the EBRD in order to help the growth of its wine industry, which plays an important strategic role in the Moldovan economy. It hopes this financing is the start of a close cooperation with the Bank".
The loan will be used to improve the quality and packaging of Moldovan wines to increase hard currency export sales in Western markets, to promote privatisation in the sector and to create new business opportunities. The total cost of the project is US$ 49 million, including foreign and local investments. Technical assistance grants will also be provided. These grants will be financed by Japan and the European Union.
Vininvest s.r.l., established solely to act as a financial intermediary in this project, has two 50 per cent shareholders, Dacia Fenix and Moldova Agroindbank, which combine technical and wine marketing know-how with credit monitoring and administration capabilities. Dacia Fenix is an independent, commercially run association established at the end of 1993 by 60 wineries. Moldova Agroindbank was formed in 1991 as a joint-stock company from the former branches of the Soviet Agroprom Bank.
With 170,000 hectares of vineyards and a total wine production of about 400 million litres a year, the wine industry is a significant contributor to the Moldovan export revenues and one of the country's major employers. Since 1989, Moldova has successfully captured new export markets in Western Europe and North America.
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