EBRD promotes international trade through key Moldovan banks

By Olga Rosca
@olgarosca

Green landscape

  • US$ 8 million to Moldova-Agroindbank and US$ 5 million to Victoriabank in trade finance lines
  • Easier transactions for Moldovan businesses trading internationally
  • EBRD steps up engagement after corporate governance turnaround of key Moldovan banks

Moldovan businesses engaging in international trade will benefit from two trade finance lines provided by the EBRD to the major Moldovan banks, Moldova-Agroindbank and Victoriabank.

Under the EBRD’s Trade Facilitation Programme, Moldova-Agroindbank and Victoriabank will benefit from trade finance limits worth US$ 8 million and US$ 5 million,respectively.

Through this facility, the EBRD will issue guarantees in favour of international commercial banks covering the political and commercial payment risk of the transactions undertaken by the two Moldovan lenders, and will provide financing for pre-export and import transactions. The banks will also benefit from the EBRD’s technical cooperation projects in trade finance.

The EBRD has recently unlocked financing to Moldova-Agroindbank and Victoriabank following steps by the two lenders to achieve transparency of ownership and to restore corporate governance.

In April 2019, the Bank provided loans worth €5 million each through the EU4Business-EBRD credit line. The financing, aimed to help Moldovan companies’ trade with the European Union, was accompanied by EU grant-based funding as part of the EU4Business initiative.

The EBRD is the largest institutional investor in Moldova. Since the start of its operations in the country, the Bank has invested €1.2 billion in more than 125 projects in Moldova’s financial, agribusiness, energy, infrastructure and manufacturing sectors.

The EBRD’s Trade Facilitation Programme currently includes over 100 partner banks in 29 countries where the Bank invests, with limits exceeding €1.5 billion in total, and more than 800 confirming banks worldwide.