By Olga Rosca
The European Bank for Reconstruction and Development (EBRD) is extending a €5 million(US$5.7million) loan to EXIMBANK to boost the competitiveness of Moldovan micro, small and medium-sized enterprises (MSMEs). The loan agreement was signed Thursday by EBRD President Odile Renaud-Basso on her first official visit to Moldova.
The new financing will allow borrowers to invest in more modern equipment and align their processes with European Union (EU) standards. Higher product quality and more efficient production in a safer and healthier working environment will help businesses to operate successfully both locally and in the European market.
Ms Renaud-Basso said: “Fast-growing small and medium-sized enterprises (SMEs) can help economies to recover from the ongoing pandemic by creating new jobs and introducing innovations. I am delighted to consolidate cooperation with EXIMBANK – part of Intesa Sanpaolo, our strong partner in so many countries – to channel funds to companies across Moldova, with support from the European Union. Better access to finance will help them grow, innovate and become greener.”
At least 70 per cent of the new funds will be used to finance green technologies and a third will be dedicated to improving access to finance for women-led companies.
Borrowers will be eligible for a cashback grant of up to 15 per cent of the loan amount upon successful completion of their respective investments. The financial incentives are funded by the EU under the EU4Business initiative.
EU Ambassador to Moldova, Janis Mazeiks added: “With the support of the European Union and in partnership with the EBRD, under the Team Europe approach, Moldovan SMEs will be able to take advantage of this flagship programme which offers SMEs the opportunity to invest in upgrading their production, increasing their competitiveness and boosting growth. The EU4Business-EBRD credit line programme provides investment grants that are a strong financial incentive for productive investments. The signing of the new loan agreement with EXIMBANK is another step towards better access to finance and we encourage SMEs from Moldova to take advantage of the new opportunities.”
The EBRD loan is part of the EU4Business-EBRD credit line available in Armenia, Georgia, Moldova and Ukraine.
First Deputy General Manager of EXIMBANK, Vitalie Bucataru commented: “This project strengthens EXIMBANK’s commitment to supporting local business, especially ESG-oriented and women-led businesses, and to bringing our own contribution to increasing their quality standards and competitiveness on the market. EXIMBANK has a significant impact on the social and environmental context in which it carries out its business. For this reason, it aims to create long-term value for the organisation, its employees, customers, community and the environment. We are therefore delighted that this project, with EU support for the grant component, marks the beginning of what will surely be a fruitful and long-lasting collaboration with the EBRD for EXIMBANK, as part of the Intesa Sanpaolo Group.”
Based in Chisinau and fully owned by Intesa Sanpaolo since 2018, EXIMBANK serves about 36,000 retail and corporate clients through a network of 17 branches.
The EBRD is a leading institutional investor in Moldova and, to date, has invested more than €1.54 billion in the country through 151 projects. It has also provided advisory services to more than 1,500 Moldovan firms to help them improve performance and grow.
