EBRD supports small businesses in Moldova

By EBRD  Press Office
@ebrd

The EBRD is supporting the real economy sector in Moldova with a credit line for small and medium enterprises (SMEs).

Responding to the increased demand for funds in the current tight credit market, the EBRD is providing a €20 million loan to Moldova-Agroindbank, the leading bank in the country, for on-lending to small and medium businesses.

As a result of the global credit crisis, lending activities in Moldova have slowed down considerably, limiting SMEs’ access to finance and hindering their growth. The EBRD facility will enable Moldova-Agroindbank to meet the growing demand for medium and long-term funding from local businesses.

The proceeds of the EBRD credit line will be used to finance investments and working capital of small and medium-sized companies in Moldova.

The EBRD loan will be supported by technical assistance aimed at strengthening Moldova-Agroindbank’s corporate governance.

“Supporting small and medium businesses in the current difficult market conditions is one of the key priorities for the EBRD” said Kiyoshi Nishimura, EBRD acting director for financial institutions in West Balkans, Belarus, Moldova and Turkey.

“The credit line offered to Moldova-Agroindbank, will increase the availability of the much needed funds for small businesses in Moldova, enabling more entrepreneurs to access bank financing and thus fostering further development of the private sector in Moldova”, added Mr. Nishimura.

“A new fresh relationship with the EBRD is one of the most important achievements of MAIB for this year” said Natalia Vrabie, President of MAIB. “Our co-operation is restarted on a new platform and we are determined to build up a successful one based on the fruitful relationship since 1995. Under the current economic conditions, MAIB’s co-operation with the EBRD for financing the SME sector is of a significant importance for us and for the whole Moldovan economy as well”, added Mrs. Vrabie.

Moldova-Agroindbank is the leading bank in Moldova holding an approximately 20 per cent of the marker share, and serving over 500,000 clients. The EBRD has previously supported MAIB through various financing packages, which have been fully implemented and repaid.

Since the beginning of its operations in Moldova, the EBRD has invested over €300 million in over 55 projects in the infrastructure, corporate, financial and energy sectors. The EBRD funds attracted additional investments worth €235 million to the Moldovan economy.