The EBRD is continuing its support to the real economy in Moldova with a new €5 million loan to Banca Sociala, the seventh largest bank in the country, for on-lending to small and medium-sized enterprises (SMEs).
With the new EBRD investment Banca Sociala will be able to expand its SME lending programmes, which will make Moldova’s small business sector stronger and more competitive.
As the economic recovery gets its pace and demand for financing grows among Moldovan SMEs, the availability of bank loans to businesses remains limited.
“With this new credit line to Banca Sociala we are addressing the scarcity of funding by providing small businesses with an access to much-needed long-term resources. This should help the further development of the private sector in Moldova. We are proud to see our long-standing partnership with Banca Sociala bring tangible results,” said Francis Malige, EBRD Director for Financial Institutions in Western Balkans, Eastern Europe and Turkey.
The transaction is supported by technical assistance funds, which will be used to strengthen Banca Sociala’s risk management system.
“Since we started our cooperation with the EBRD, Banca Sociala has received credit lines for a total of about €24 million. Banca Sociala has been always actively supporting private businesses in Moldova and especially the SME sector. The new credit line will allow us to improve access to long-term funding for this important group of our clients. It will also make our domestic SMEs more sustainable, creating additional opportunities for economic growth in the country,” said Vladimir Suetnov, President of Banca Sociala.
Since the beginning of its operations in Moldova, the EBRD has committed over €460 million in various sectors of the economy, mobilising additional investment in excess of €320 million.