An additional equity investment of up to US$ 250,000 (EUR 236,000) in Victoria Bank to support its capital base consolidation and institutional development, which is anticipated to take place later in 1999.
The operation will enable VB to consolidate its capital base, which is scheduled to take place later in 1999, and will strengthen VB’s balance sheet. The proceeds of the equity will be used by VB to expand its loan portfolio to small and medium-sized enterprises (SMEs) in Moldova, to develop new products in order to become a more competitive financial institution and to support VB's institutional development.
By supporting the development of VB, the operation will contribute to the promotion of a sound private banking system in Moldova and will facilitate the financing of private SMEs.
Victoria Bank (VB) started operations in 1989 as one of the first purely private banks in Moldova. Today it is one of the largest private commercial banks in Moldova in terms of both total assets and total equity and is regarded as a well-managed and profitable organisation. VB maintains a good domestic branch network, comprising nine branches throughout the country, located in Chisinau and other major industrial centres.
VB has a total market share of approximately 9 per cent of aggregate banking assets. It has been able to implement a strategy to diversify its lending portfolio and business activities. VB now competes with a broad spectrum of Moldovan banks for lending opportunities and deposits.
An additional equity investment of up to US$ 250,000 (EUR 236,000), together with the initial investment, will keep the EBRD’s shareholding in VB at the same level.
The total project cost is US$ 250,000 (EUR 236,000).
The bank will adopt and implement environmental procedures satisfactory to the EBRD, and all activities will be required to comply with the Bank's FI Environmental Exclusion List. All borrowers will be required to comply, at a minimum, with health, safety and environmental standards and regulations and public information/participation requirements in Moldova. On an annual basis, VB will report to the EBRD on environmental issues.NoneN
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