First EBRD portfolio risk sharing facility to support Moldovan bank

• EBRD provides first unfunded portfolio risk-sharing facility to OTP Bank Moldova

• EU-supported facility will unlock €30 million of new financing for Moldovan businesses 

• Formal launch of new EBRD unfunded product in Moldova to be held next week  

The European Bank for Reconstruction and Development (EBRD) is extending an unfunded portfolio risk-sharing facility to Moldova’s OTP Bank to unlock €30 million of new finance for Moldova’s business sector, with a focus on agriculture and trade.  

It includes first loss risk cover provided by the European Union via the European Fund for Sustainable Development Plus (EFSD+), which promotes sustainable investments in EU partner countries.  

The facility’s risk-sharing structure helps partner banks strengthen their resilience, which in turn unlocks the ability of these financial institutions to channel excess liquidity into new lending using its own funds. 

“In recent years, regional and local risks have reduced the market’s ability to provide accessible finance. With EBRD’s PRS innovative facility, we will be able to unlock additional liquidities to bridge that gap – to fuel the engine of Moldova’s economy. As a sustainability-oriented bank, we are look forward to facilitating ESG standards adoption through the EFSD+ component,” said Bogdan Spuza, Executive Committee President and Chief Executive Officer of OTP Bank. 

The EBRD is Moldova’s largest institutional investor. To date it has invested nearly €2.5 billion in 177 projects in the country.