|
EBRD works with Moldovan banks to boost MSE sector
The EBRD, under its Moldovan Microlending Programme (MMP), is providing
technical assistance to selected local private banks to develop and enhance
lending skills for micro and small loans. The Programme will focus on training
loan officers, development and introduction of specialised lending products
for micro and small businesses, implementing satisfactory monitoring tools and
procedures, including internal auditing, loan monitoring for high turnover
micro portfolios and developing analytical techniques for assessing problem
loans. The experts under the programme will provide support to local banks in
establishing dedicated MSE lending departments, selecting and training loan
officers and supervising the lending activities. MMP intends to cover as many
regions of Moldova as possible but will, as minimum, operate in at least five
regions (including Chisinau) by the end of the two year assignment.
Until now the micro-finance market in Moldova has been mainly serviced by
non-bank financial institutions. However the potential for MSE lending in
Moldova is large, with small businesses representing nearly 90% of the total
number of enterprises in the country and more active involvement of commercial
banks will improve credit access for micro and small businesses as well as
boost competition..
The Programme funding for EUR 1.3 million has been provided by the ETC Multi
Donor Fund under Early Transition Countries (ETC) Initiative which aims to
provide increasing support to smaller private sector projects in the Bank’s
seven lowest-income countries of operations. Each of the participating banks
will also contribute substantial staff and management resources. The Programme
will be carried out by Business and Finance Consulting Company, which has an
international team of experts with significant experience in microfinance in
Europe and CIS.
To be included in the Programme the banks have to meet EBRD’s required
standards transparency of ownership, corporate governance and financial
soundness and have to be fully dedicated to development of microfinance. MMP
has already started working with two Moldovan banks, Mobiasbanca and Banca
Sociala, which are existing partner banks of the EBRD and meet EBRD’s required
standards. MMP will be open to additional banks subject to their ability to
meet EBRD’s eligibility criteria.
The EBRD is the largest investor in Moldova with almost €206 million in 43
projects across the country. The country is part of the EBRD’s Early
Transition Countries initiative, designed to address the needs of the poorest
countries in which the Bank operates.
|
