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EBRD extends credit line to Moldovan commercial bank
Clients of Moldagroindbank (MAIB), one of Moldova’s leading commercial banks, are to benefit from a US$ 20 million credit line provided by the European Bank for Reconstruction and Development (EBRD). The loan will allow MAIB to extend hard currency medium to long-term funding to private, and privatising, companies in Moldova.
Ron Freeman, First Vice President of the EBRD, said: “This loan is instrumental in promoting private sector development, as term financing is very scarce in Moldova while the volume of creditworthy borrowers in the private sector is increasing. The EBRD’s credit line will bolster the competitive business environment and also help strengthen the commercial banking sector.”
The Chairman of MAIB, Grigorie Furtuna, commented: “Even though we have developed a strong client base we do not have the financial resources to provide our clients with the products and services required for today’s competitive environment. The EBRD’s credit line and technical help will help us resolve this as well as strengthening our internal credit procedures.”
MAIB started operations in 1991 as a result of the merger of the Moldovan branches of the Agroprom Bank of the former Soviet Union. Having specialised in agro-processing banking business, MAIB is currently diversifying its lending portfolio and is developing a broader range of banking products and services to its clients. The client base comprises over 86,000 private and state-owned companies and individuals, including depositors. MAIB plans to expand its portfolio of loans for investments in agriculture, services, tourism, small-scale manufacturing and small and medium-sized private industries, and to increase its deposit capabilities through its network of 45 branches.
MAIB is a private bank with over 8,500 shareholders. Its total equity funds were Lei 71.6 million (US$ 16.8 million) at the end of 1994. The Republic of Moldova is guaranteeing the loan.
Including the MAIB credit line, the EBRD’s Board of Directors has approved six projects in Moldova, valued at ECU 66.8 million (US$ 89.9 million), of which ECU 18.1 million (US$ 24.3 million) is to the banking sector.
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