VICTORIABANK CREDIT LINE (II)

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 18282

Status Complete

Location

Moldova

Business Sector

Financial Institutions

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 18282

Status Complete

Location

Moldova

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

06 Nov 2001

Disclosure date

04 Oct 2001

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

Proposed second credit line of US$ 4 million to Victoriabank SA (VB) to support medium-term lending to local private small and medium-sized enterprises in Moldova. The new facility aims to ensure the continuity of the existing SME credit line under implementation since 1995, which has largely been repaid by VB. It will focus on meeting the demand for medium to long-term financing to SMEs.

Transition Impact

The main transition impact of the project would be to enhance the capability of one of the largest private banks in Moldova. This would further increase its activities in providing medium-term financing to domestic SMEs. This would help VB to meet the increased demand for medium-term lending as the country is recovering from the consequences of the Russian crisis of 1998.

The Client

VB was the first privately established bank in Moldova, and over the past 11 years has developed into the second largest bank in the country. It currently holds around a 13 per cent share of total assets in the Moldovan banking sector. Its bank lending share in the domestic market is around 12.1 per cent and the total deposits share is 20 per cent.

VB’s growth has been supported by the EBRD since 1995 though the first SME credit line of US$ 4 million, an equity participation of around US$ 0.7 million, Swiss-American Micro-Enterprise Programme funding of US$ 1 million and Trade Facilitation Programme finance of up to US$ 2.5 million. The first credit line has financed 88 sub-projects to Moldovan private entrepreneurs.

EBRD Finance

Senior loan of US$ 4 million extended for a period of 5 years.

Project Cost

The total project cost is US$ 8 million (€8.6 million).

Environmental Impact

VB has already benefited from environmental training and implemented environmental procedures satisfactory to the EBRD. All activities will be required to comply with the Bank's Financial Intermediary Environmental Exclusion List. All borrowers will be required to comply, at a minimum, with health, safety and environmental standards and regulations and public information/participation requirements in Moldova. On an annual basis, VB will report to the EBRD on environmental issues.

Technical Cooperation

VB has already benefited from extensive technical cooperation (TC) financed by the Bank from 1995 to 1999. No additional TC funds are envisaged in support of this project.

Company Contact

Transition impact

ETI Score:75

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

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Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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