- Moldovan firms to benefit from greater access to finance
- EBRD extends unfunded risk-sharing framework of up to €20 million to maib
- Additional €5 million loan, backed by EU, for on lending to businesses
Small, medium and selected larger businesses in Moldova are set to benefit from greater access to finance as the European Bank for Reconstruction and Development (EBRD) is extending a fresh financial package to maib.
The package includes a €20 million facility, where the EBRD will share maib’s exposures to local enterprises through unfunded risk participation, akin to providing a guarantee.
Maib will also receive €5 million loan under the EU4Business-EBRD credit line for on-lending to local firms. The new loan builds on the bank’s strong track-record disbursing €30 million under the credit line over the past two years.
The financing is for local small and medium-sized enterprises to upgrade products and services in line with EU standards, increase competitiveness locally and grasp international trade opportunities. At least 70 per cent of the loan is expected to finance investments in green technologies.
The EU is complementing the EBRD financing with grants and free-of-charge technical assistance to borrowers under its EU4Business initiative.
350 Moldovan companies have already benefited from the programme since its launch in 2016.
Octavian Costas, EBRD Associate Director, Senior Banker, said: ‘’We are pleased to be joining hands with our long-standing partners, the European Union and maib to support business in Moldova with much-needed finance. Today’s signing will open up more opportunities for a greater number of companies across the country to invest in recovery, long term growth and development.
Jānis Mažeiks, EU Ambassador to the Republic of Moldova, said: “Support to SMEs has been and remains at the core of EU assistance to the Republic of Moldova and its people, as they play an essential role in building modern economies, due to their capacity to innovate and adapt to fast changing markets. Today, in partnership with EBRD and under the Team Europe approach, another concrete step has been taken to improve the access of Moldovan SMEs to finance, which is essential for introducing modern technologies and raising competitiveness. We encourage the SMEs from the Republic of Moldova to take advantage of the new opportunities provided to them in the framework of EU4Businees and in partnership with local banks.”
Giorgi Shagidze, CEO of maib said: “This is a unique product for our customers so that we can meet their increasing requirements in financing, supporting growing businesses and investing in long term development Moldova’s economy. I would like to express my gratitude to the EBRD and the EU for continued partnership with maib and longstanding support for the Moldovan economy. Signing the risk-sharing agreement is a testament to maib's lending expertise and our ability to offer much needed financial products and services to local businesses. We look forward to working with our valued partners to enable Moldovan businesses to thrive and stay competitive”.
Maib is the largest bank in Moldova servicing 1 million clients through a network of 58 branches and 86 agencies.
The EBRD is the leading institutional investor in Moldova. Since the start of its operations in the country, the Bank has invested over €1.4 billion in 146 projects in Moldova’s financial, agribusiness, energy, infrastructure and manufacturing sectors.