The proposed project is a credit line for up to US$ 5 million in two tranches to MICB to be on-lent by MICB to Small and Medium Sized Enterprises (SMEs) in Moldova. The proceeds of the credit line will be used by MICB to provide medium-term financing to SMEs for production, investment, trade, services and working capital needs. The sub-loans would be denominated in various currencies depending on customer demand.
Transition impact potential derives from the demonstration effect associated with supporting the growth of SME lending which is still underdeveloped in Moldova. The development of a SME lending market will further build on the successful implementation of the other credit lines granted by the EBRD to some Moldovan banks in Moldova since 1995. It would also contribute to the development of financial markets by providing medium-term financing. Supporting the growth of MICB and the diversification of its funding base will strengthen the banking sector by providing much-needed medium-term financing for SMEs and thus increasing competition.
MICB is the fourth largest Moldovan bank, with a 10-11% market share of total banking assets at end-2003, total assets of some US$ 81 million, total equity of US$ 14 million and net profit of US$ 3.5 million (MAS, unaudited). Shareholders include 909 individuals and companies, both Moldovan and foreign investors.
A loan for up to US$ 5 million extended by the Bank to MICB.
US$ 5 million.
MICB will continue to operate in accordance with EBRD's "Environmental Procedures for Local Banks". In implementing these procedures, it will require its borrowers to comply, at a minimum, with national/local health, safety, environmental, and public consultation requirements.
Mr. Victor Cibotaru, President
Str. Armeneasca nr. 38
MD 2012, Chisinau,
Republic of Moldova
Phone: +373 22 57 67 23
Fax: +373 22 27 91 95
For business opportunities or procurement, contact the client company.
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Text of the PIP