- EBRD extends €5 million loan to Victoriabank in Moldova
- Moldovan small and medium businesses to benefit from greater access to investment finance
- Project is supported by the EU with incentive grants under the EU4Business Initiative
The European Bank for Reconstruction and Development (EBRD) is stepping up support for micro, small and medium-sized enterprises (MSMEs) in Moldova.
A new €5 million EBRD loan for Victoriabank was signed today by EBRD President Odile Renaud-Basso and Victoriabank’s CEO, Levon Khanikyan, in the presence of the EU Ambassador to the Republic of Moldova, Jānis Mažeiks. The loan will help Moldovan firms across the country become more competitive locally and internationally. President Renaud-Basso is making her second visit to Moldova in two years this week.
The support is part of a joint programme - the EU4Business-EBRD credit line, for which. the EBRD provides finance to MSMEs through partner financial institutions, while the EU complements the offer with incentive grants under the EU4Business initiative.
The borrowers will be able to invest in modern equipment and production upgrades, enhance product quality, health and safety measures, and, especially, advance environmental practices and resource efficiency since at least 70 percent of the loan is expected to fund green technologies.
The loan is complemented by EU grant funding, providing incentive payments to successful investment projects of Victoriabank’s borrowers, as well as a project consultant’s implementation assistance to Victoriabank and its clients.
Moldova was granted candidate status to join the EU in June 2022. This fresh financing will contribute to achieving the EU Economic and Investment Plan target to support MSMEs in Moldova.
Victoriabank is the third largest commercial bank in Moldova. It is majority owned by VB Investment Holding B.V., the Netherlands, which is in turn owned by Banca Transilvania, Romania, and the EBRD.
The EBRD is the leading institutional investor in Moldova. Since the start of its operations in the country, the Bank has invested more than €2 billion in 164 projects in Moldova’s financial, agribusiness, energy, infrastructure and manufacturing sectors.