The EBRD is continuing to support Moldovan households in increasing residential energy efficiency by providing a €5 million loan to Moldindconbank for on-lending to private individuals and condominium associations.
The loan is extended under the Moldovan Residential Energy Efficiency Financing Facility* (MoREEFF) and will enable Moldindconbank to provide long-term funding to clients implementing residential energy saving projects.
Moldova relies heavily on expensive imported energy. The high rate of energy loss due to out-dated and inefficient equipment, coupled with the obsolete condition of the energy infrastructure, makes Moldova one the most carbon intense countries in Europe; this adversely affects the environment and results in high bills for consumers. With EBRD financing, individuals and condominium associations in Moldova will be able to invest in energy efficient appliances and materials for their properties and thereby significantly reduce their energy consumption and bills.
Announcing the investment, Henry Russell, EBRD FI Director for Western Balkans, Belarus and Moldova, said: “Reducing the energy intensity of economies is one of the EBRD’s key priorities and we are pleased to build on our successful cooperation with Moldindconbank to help people in Moldova cut their energy costs, especially during such challenging economic times.”
Moldindconbank is the third largest commercial bank in Moldova and a partner of the EBRD in supporting the country’s private sector.
“We are very glad that thanks to the EBRD - MoREEFF project, Moldindconbank will be able to support private individuals and condominiums implementing saving energy measures in their dwellings, contributing therefore to the increase of the overall well-being of our clients.” said Svetlana Banari, President of Commercial Bank “Moldindconbank” S.A.
Since the beginning of its operations in Moldova, the EBRD has signed around 90 investment projects in the country, covering energy, transport, agribusiness, general industry and banking sectors, for a cumulative amount of almost €700 million.
* MoREEFF is a recently launched framework developed to encourage households to make better use of the country’s energy resources and to invest in energy efficient appliances. This includes thermal insulation of walls, roofs, floors, installation of boilers, heat pumps and other energy saving measures.