The European Bank for Reconstruction and Development (EBRD) is strengthening its support for small and medium-sized enterprises (SMEs) in Moldova with the launch of a new €80 million financial sector framework, at a time when access to finance remains scarce. Mobiasbanca – Groupe Société Générale is the first bank to sign up to the framework, and will receive a €5 million loan for on-lending to SMEs seeking access to growth capital.
Julia Otto, Head of the EBRD’s Resident Office in Chisinau, said: “The financing needs of SMEs deserve particular attention, as their development is crucial for long-term growth. The credit line to Mobiasbanca under our new financial sector framework will provide the bank with long-term funding suitable for SME investments. We will especially aim to reach out to businesses in the remote regions of Moldova, where financing is needed most.”
Ridha Tekaia, President of Mobiasbanca – Groupe Société Générale, said: “The Moldovan SME project in 2013 represents a continuity of good partnership relations with the EBRD within the framework of the agreement signed in 2008, and an opportunity to contribute to enhancing the competitive advantages of Mobiasbanca – Groupe Société Générale in the banking market. We will grant five-year loans to help our clients across the country and across sectors – micro-enterprises, SMEs and large enterprises – to finance working capital, investment and financial leasing, encouraging development and growth.
The EBRD’s new framework launched in 2013 will provide local banks and non-bank financial institutions with a wide range of financial products, including credit lines, to increase the financing available to SMEs, and to foster competition, efficiency and innovation in the financial sector.
While investing in Moldova’s private sector and improving access to finance, the EBRD is also supporting the government and other relevant Moldovan authorities in creating a more favourable business environment to stimulate domestic and foreign investment.
The EBRD is the largest institutional investor in Moldova, and has, to date, signed some 100 investments in the country, covering the energy, transport, agribusiness, general industry and banking sectors, for a cumulative amount of almost €900 million. The EBRD is also pursuing an intensive policy dialogue to tackle key transition challenges across sectors.