- EBRD extends €10 million loan to ProCredit Bank in Moldova
- Moldovan small and medium businesses to benefit from greater access to investment finance
- Project is supported by EU with incentive grants under the EU4Business Initiative
Moldovan businesses are set to benefit from greater access to finance as the European Bank for Reconstruction and Development (EBRD), in partnership with the European Union, is extending a fresh financial package to ProCredit Bank Moldova under the EU4Business-EBRD Credit Line.
The €10 million loan will support investment financing for micro, small and medium-sized enterprises (MSMEs) in Moldova to upgrade their equipment, products and services in line with EU standards, increase competitiveness and grasp international trade opportunities. At least 70 per cent of the loan is expected to finance investments in green technologies. Since 2018, ProCredit Bank has provided financing to local MSMEs under the programme for a total of €25 million.
The loan was signed during a visit to Moldova by Mark Bowman, EBRD Vice-President, Policy and Partnerships.
“Small businesses are the backbone of the Moldovan economy and supporting them is vital to secure sustained economic growth. Investments in equipment upgrades and energy efficiency are critical for their competitiveness and help minimise the negative impacts of war in the neighbouring Ukraine and energy crisis.” said Mr Bowman.
“Support to SMEs has been and remains at the core of the EU assistance to the Republic of Moldova. At this moment there are some 30 SME-focused programmes under the EU4Business initiative, financed or co-financed by the EU, providing financial support through loans, grants and guarantee schemes, and business advice or a combination of both,” said Adam Grodzicki, Deputy Head of Cooperation in the EU Delegation to the Republic of Moldova.
Irina Coroi-Jovmir, Chairperson of the Management Board of ProCredit Bank Moldova, said: “ProCredit Bank Moldova strives to be a leading SME bank in the market, following sustainable and impact-oriented banking practices. The bank has SMEs in its DNA, as we have more than 90 per cent of Total Loan Portfolio allocated to Moldovan small and medium-sized companies. We believe that ProCredit Bank, together with our long-term funding partner the EBRD, by signing this contract, will unite the forces and passion for development of a greener, more resilient SME sector in Moldova.”
The loan is complemented by EU grant funding, supporting grant incentives on successful investment projects for ProCredit Bank’s borrowers, as well as project consultant implementation assistance to ProCredit Bank and its clients.
Moldova was granted candidate status to join the EU in June. This fresh financing will contribute to achieving the EU Economic and Investment Plan target to support 50,000 MSMEs in Moldova.
ProCredit Bank is a development-oriented commercial bank. The fifth largest bank in Moldova, it is fully owned by ProCredit Holding AG & Co and part of the international ProCredit Group headquartered in Frankfurt am Main. The group’s 12 banking subsidiaries operate in transition economies and developing countries and also include a bank in Germany.
The EBRD is Moldova’s biggest institutional investor. To date it has invested over €2 billion in 159 projects.