- EBRD expands access to finance for Moldovan businesses amid Covid-19 crisis
- Mobiasbanca-OTP Group receives €5 million loan for on-lending to private micro, small and medium-sized enterprises
- Funds available in several currencies to meet urgent need for finance
Moldovan businesses will benefit from greater access to finance as the EBRD is extending a new €5 million loan to its longstanding partner in the country, Mobiasbanca - OTP Group S.A. Many local companies have been affected by the coronavirus crisis and are seeking urgent financing.
Angela Sax, EBRD Head of Moldova, said: “EBRD funds will be on-lent to local companies, many of them suffering from the impact of the Covid-19 outbreak. Keeping businesses running despite the pandemic will help the Moldovan economy recover sooner.”
The EBRD is expecting a 4 per cent contraction in Moldova’s economy in 2020, followed by a recovery of 5 per cent in 2021.
Elena Guzun, Deputy CEO and Commercial Director, Corporate Banking, at Mobiasbanca - OTP Group, commented: “More companies will have the opportunity to access financial resources for their growth and development, boosting their competitiveness and paving the way for market expansion.”
The EBRD loan to Mobiasbanca will be extended either in US dollars, or in euros or Moldovan lei, depending on the needs of customers.
Mobiasbanca is a key Moldovan lender, with over 30 years of experience, offering a full range of services to about 8,000 companies and 160,000 individuals through 53 branches across the country.
The new financing is part of the EBRD’s efforts to help countries in its regions to combat the impact of the coronavirus and support the recovery. The EBRD stands ready to provide support worth €21 billion over the period 2020-21.
The support includes a Resilience Framework for existing clients, offering short-term liquidity, working capital and restructuring of exposure. The EBRD is also providing trade finance and an emergency support programme for providers of vital infrastructure. In addition, the Bank is ramping up its local currency, capital markets and equity offers.
The EBRD is the leading institutional investor in Moldova and has so far invested over €1.3 billion through 130 projects there. The Bank also helps the Moldovan authorities to design policies that improve the business climate in the country.