Project description
and objectives:
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The proposed project is a credit line for up to EUR 5 million in two tranches
to BS to be on-lent by BS to Small and Medium Sized Enterprises (SMEs) in
Moldova. The proceeds of the credit line will be used by BS to provide
medium-term financing to SMEs for production, investment, trade, services and
working capital needs. The proposed project also includes a Trade Facilitation
Program (TFP) of USD 1 million which will support the development of BS’
documentary trade operations in favour of Moldovan enterprises.
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Transition impact:
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Transition impact potential derives from the demonstration effect associated
with supporting the growth of SME lending which is still underdeveloped in
Moldova. The TFP component will also support the development of the private
SME sector and international trade between Moldova and other countries.
Development of a market for medium term SME lending will further build up on
the successful implementation of the other credit lines granted by the EBRD to
Moldovan banks since 1995. Supporting the growth of BS and the diversification
of its funding base will strengthen the banking sector by providing
much-needed medium-term financing for SMEs and thus increasing competition.
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The client:
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BS is the fifth largest Moldovan banks with around 9% market share of total
banking assets at end-2004, total assets of some USD 93 million, total equity
of USD 14.5 million and net profit of USD 2 million (2004 figures, MAS,
unaudited). Shareholders include 637 individuals and companies, both Moldovan
and foreign based.
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EBRD finance:
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A loan for up to EUR 5 million and a TFP of USD 1 million extended by the Bank
to BS.
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Total project cost:
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EUR 5.7 million equivalent in total for both transactions.
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Environmental impact:
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BS will operate in accordance with EBRD's "Environmental Procedures for Local
Banks". In implementing these procedures, it will require its borrowers to
comply, at a minimum, with national/local health, safety, environmental, and
public consultation requirements.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Mr. Vladimir I. Suetnov, President
Banca Sociala SA
61,
Banulescu-Bodoni Street
MD 2005, Chisinau,
Republic of Moldova
Phone: +373 22 22 14 81
Fax: +373 22 22 11 23
E-mail:
office@socbank.md
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EBRD contact:
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Till Weidemueller, Operation Leader: weidemt@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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