|
EBRD extends support to Moldovan small businesses
Small and medium-sized enterprises in Moldova will benefit from a $6 million credit facility provided to Moldova-Agroindbank (MAIB) by the European Bank for Reconstruction and Development today. The facility, which builds upon more than seven years of cooperation between the two banks, allows Moldova-Agroindbank to continue extending financing to Moldovan entrepreneurs for up to four years.
Hildegard Gacek, the EBRD's Director for Moldova, said the EBRD wants to play a strong role in encouraging Moldovan private entrepreneurs -- a key reason for expanding the cooperation with Moldova-Agroindbank after seven successful years. Moldova-Agroindbank is a key partner bank in Moldova and one of the best channels the EBRD can use in financing the Moldovan private sector, Ms Gacek added.
The cooperation between the EBRD and Moldova-Agroindbank started in 1995, when the EBRD extended MAIB a $20 million credit line. In 1996 the Bank invited MAIB to help implement the Swiss-American Micro-Entreprises Program ($2 million) and in 1998 the Bank extended MAIB an additional senior convertible loan of $8 million. Also, since 1999, MAIB has been an active participant in the EBRD's Trade Facilitation Programme ($2 million). At the beginning of 2001, in light of Moldova-Agroindbank's strong financial results and good position in the market, the EBRD became an important shareholder of MAIB together with the Western NIS Entreprise Fund.
Natalia Vrabie, President of Moldova-Agroindbank, said the latest facility is intended to allow Moldovan private entrepreneurs to cover their short and medium-term financing needs. "This agreement is a very important step forward in terms of cooperating with the EBRD," she said. "Seven years of close partnership stand as proof of our commitment to our customers. We are very proud of what we achieved together, and the fact that the EBRD granted today a new $6 million credit line adds to the responsibility and the commitment of the management towards its Moldovan private SME clients."
Moldova-Agroindbank was established in 1991 as a joint venture commercial bank, controlled by a large number of small shareholders. In February 2001 the EBRD and Western NIS Enterprise Fund invested in MAIB and each currently holds around 10 per cent. As of March 2002 MAIB had assets of more than $110 million and equity about $30 million. MAIB conducts business through 43 branches and 73 sub-branches and offices all over Moldova. The EBRD's overall commitments to date for Moldova are €142 million.
|
