High demand for finance as local firms work to meet EU standards
The EBRD is providing an additional €20 million loan to Moldova’s Mobiasbanca - Groupe Société Générale to meet growing demand for finance from local businesses who are investing in improving the quality of their products and services.
Moldovan companies are raising standards following the establishment of the Deep and Comprehensive Free Trade Area (DCFTA) with the European Union (EU) in 2016 which offers them access to the highly competitive EU single market.
The new financing comes under the EU4Business-EBRD Credit Line. The EU and the EBRD are partnering in this facility to expand access to finance for businesses willing to take advantage of opportunities created by the DCFTA.
A previous €10 million loan extended under EU4Buisness-EBRD Credit line to Mobiasbanca in December 2016 was met with high demand. Twelve local firms have already benefited from EBRD financing and the number of loan applications is growing rapidly.
Under the EU4Business initiative, the EU is supporting the new credit line with investment incentives for eligible companies and is also funding free technical advice offered by local and international experts.
Dimitri Gvindadze, Head of the EBRD office in Chișinău, said: “We were impressed by the response to the first loan under this framework and encourage more Moldovan companies to apply for finance and grants that we are offering together with EU. Investment in higher standards and improved quality will help local firms compete in the EU market.”
Antoine Gabizon, President of the Management Board and CEO of Mobiasbanca, added: "The additional EBRD loan reflects the confidence in Mobiasbanca and recognition of our offering the best financial facilities for entrepreneurship development in the Republic of Moldova. The Mobiasbanca team is geared to provide clients with convenient financial solutions and professional expertise for the development of small and medium-sized enterprises to help them access the EU market, thus boosting the economy of the country.”
The EU4Business-EBRD Credit Line is part of a comprehensive package of activities that supports businesses to make the most of their new access to the EU common market. The EBRD and the EU also support Moldova’s firms through direct lending, expert advice on business development and policy dialogue with the authorities aimed at improving the investment climate.
The loan to Mobiasbanca - Groupe Société Générale is part of a larger joint programme which consists of €380 million in EBRD loans and trade guarantees to local banks for on-lending to businesses in Moldova, Georgia and Ukraine, while the EU is making available €19 million for technical assistance, investment incentives and risk-sharing.
The EBRD is the largest institutional investor in Moldova. Since the start of its operations in the country, the Bank has invested over €1.1 billion in almost 120 projects in Moldova’s financial, agribusiness, energy, infrastructure and manufacturing sectors.