Clean-up of banking sector tops list of priorities
The Board of Directors of the European Bank for Reconstruction and Development (EBRD) has approved a new strategy for Moldova which will guide the Bank’s investments and policy work in the country for the next five years.
The 2017-22 strategy sets out the following priorities:
Restructuring the banking sector: The EBRD, together with International Monetary Fund, European Union and other key partners, will continue efforts aimed at rehabilitation of the banking sector. It will continue lending to its partner banks in Moldova to make finance available for Moldovan businesses. The EBRD will also work with strong strategic investors to restore transparency and corporate governance in the sector.
Enhancing energy security: The EBRD will finance projects that promote greater domestic and cross-border interconnectivity in the energy sector. It will support the development of infrastructure for a wholesale electricity market and will fund opportunities in the renewables sector. The Bank will also conduct a comprehensive policy dialogue on reforms in the energy sector.
Supporting private firms: The EBRD will continue lending to Moldovan companies, including under its Deep and Comprehensive Free Trade Area facility, to help them compete in the EU market. It will directly finance companies with viable business models, including export-driven foreign investors operating in free economic zones. The EBRD will help Moldova’s best small and medium-sized enterprises to grow and explore new markets. It will continue working with the government to improve Moldova’s business climate, including through its support to the Secretariat of the Economic Council of the Prime Minister.
Promoting commercialisation of public utilities and better infrastructure: The EBRD will continue supporting the development of infrastructure, including the modernisation of roads and railways. It will work with the authorities on tariff reform, procurement, sustainable practices, transparency, governance and public-private schemes. The EBRD will promote energy efficiency in the public and residential sectors through direct investment and via partner financial institutions.
Dimitri Gvindadze, Head of the EBRD’s office in Chisinau, said: “The new strategy gives a fresh impetus to our engagement in Moldova. Combining financial investment with policy engagement, the EBRD is perfectly placed to make a real impact in Moldova. Our focus is on the establishment of a sound, transparent and modern financial sector that works for the people and the companies of Moldova.”
The EBRD is the leading investor in Moldova. To date, the Bank has invested over €1 billion in various sectors: infrastructure, energy, banking, industry, commerce and agriculture.