VICTORIA BANK CREDIT LINE III

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 34599

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 34599

Status Complete

Location

Moldova

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

30 Sep 2003

Disclosure date

26 Aug 2003

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

$4 million credit line to Victoriabank (VB). The proceeds of the credit line will be used to provide medium-term foreign currency loans to private Moldovan small and medium sized enterprises (SMEs) mainly for financing investment purposes and working capital.

Transition Impact

The credit line to VB is an important continuation of the EBRD's financial involvement in the Moldovan banking sector, which has been significantly strengthened and improved through equity investments, implementations of micro-lending programs, SME credit lines, and Trade Facilitation Programs to various banks. Currently the main transition challenges will be deepening the financial intermediation, which is still very low with a loan to GDP ratio of 17%, and improving access to long-term finance for the real economy.

Thus, the main transition impact of the project consists of enhancing the ability of one of the largest private banks in Moldova to meet the increased demand for medium-term funding from domestic private SMEs. The credit line will aim to reach new clients and extend loan maturities, while not endangering the overall loan portfolio of Victoriabank.

The Client

VB was the first private bank established in Moldova in 1990. During the last 13 years VB has developed into the second largest bank in the country in terms of total assets, lending activities and deposit volume with current market shares of approximately 15%, 13%, and 17% respectively. Since 1995, VB has a general banking licence and provides a full range of banking services.

VB's growth has been supported by the EBRD since 1995 through two SME credit lines of $4 million each, an equity participation of around $0.7 million, Swiss-American Micro-Enterprise Programme funding of $1 million and Trade Facilitation Programme finance of up to $2.5 million.

EBRD Finance

Unsecured senior loan of $4 million extended for a period of 5 years.

Project Cost

$4 million.

Environmental Impact

VB has demonstrated full compliance with EBRD's environmental requirements within the existing operations. VB will be required to comply with EBRD's Environmental Procedures for Intermediated Finance through Local Banks as revised in 2003, including compliance with applicable national environmental, health and safety requirements, adherence to the Environmental Exclusion and Referral List and submission of annual environmental reports to the Bank.

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

Victoriabank S.A.
31 August Street, 141
2004 Republic of Moldova
Phone: (3732) 233 065
office@victoriabank.md

Transition impact

ETI Score:60

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

EBRD project enquiries not related to procurement:
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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