Moldova Microlending Framework

Location:

Moldova

Project number:

36301

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

04 Apr 2006

Status:

Completed

PSD disclosed:

22 Feb 2006

Project Description

The proposed project will provide on-lending funds to leading Moldovan banks and non-bank microfinance institutions which will enable EBRD to further expand outreach to creditworthy MSEs throughout the country. Credit lines to commercial banks will be accompanied by an intensive technical assistance programme which will ensure that they develop the necessary skills and capacity to undertake MSE lending profitably.

Transition Impact

The proposed project will enable the Bank to increase financial intermediation by expanding and deepening outreach as well as facilitate competition through strengthening domestic banks committed to this sector. Competition will result in downward pressure on interest rates thus benefiting MSE borrowers. Additional transition impact will be the transfer of skills and know-how to loan officers as the four PB will benefit from TC.

The Client

The proposed project will initially be implemented in four local commercial banks.

EBRD Finance

USD 25 million “Moldova Microlending Framework” in the form senior loans to local commercial banks for on-lending to micro and small enterprises (MSEs).

Project Cost

USD 25,000,000 (EUR 20,621,958.26)

TC of EUR 1.3 million has been provided by the ETC Multi Donor Fund (approved by TC Com on 05 July 2005)

 

Environmental Impact

All partner banks will adhere to the Bank’s Environmental Procedures for Micro and Small Loans and apply them to all sub-loans financed under this Facility. Sub-loans will be required to comply, at a minimum, with national health, safety and environmental legislation and standards. Each PB will provide EBRD with Annual Environmental Reports.

Technical Cooperation

TC funding has been provided by the ETC Multi Donor Fund for EUR 1.3 million and this will provide the necessary resources for two years of assistance to the four selected partner banks. Each of the partner banks will also contribute substantial staff resources, management resource and office facilities.

 

Consultants have been selected under EBRD’s standard procedures and the Bank is currently engaged in contract negotiations: consultants are expected to commence the TC programme in February 2006.

 

Company Contact

Sabina Dziurman, e-mail: dziurmans@ebrd.com

 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

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Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.