By Vanora Bennett
Multi-currency on-lending underpins strong investment demand from SMEs
Moldovan businesses are set to benefit from greater access to finance as the European Bank for Reconstruction and Development (EBRD), in partnership with the European Union (EU), extends a new €10 million(US$10.8million) financial package to ProCredit Bank Moldova under the EU4Business-EBRD Credit Line.
Through loans and grants, the EU4Business-EBRD Credit Line supports a wide range of projects that increase the competitiveness and capacity of small and medium enterprises (SMEs) from countries such as Moldova, both in the EU and their home markets. EU4Business is an umbrella initiative of the European Union that includes all EU support to small and medium enterprises in Armenia, Azerbaijan, Georgia, Moldova and Ukraine.
ProCredit Bank, a long-standing client of the EBRD, is one of the EBRD’s most active partner banks under the EU4Business programme in Moldova and has successfully placed a total of €35 million of financing since 2018. The latest €10 million loan will help the bank meet the increased demand of its business clients ensuring uninterrupted business flow.
The project supports investment financing for micro, small and medium-sized enterprises (MSMEs) in both euros and Moldovan lei to upgrade their equipment, products and services in line with EU standards, increase competitiveness and grasp international trade opportunities. At least 70 per cent of the loan is expected to finance investments in green technologies.
The loan is complemented by EU grant funding, supporting grant incentives on successful investment projects for ProCredit Bank’s borrowers, as well as project consultant implementation assistance to ProCredit Bank and its clients.
Moldova was granted candidate status to join the EU in 2023. This fresh financing will contribute to achieving the EU Economic and Investment Plan target to support 50,000 MSMEs in Moldova.
ProCredit Bank is a development-oriented commercial bank. The fifth largest bank in Moldova, it is fully owned by ProCredit Holding AG & Co and part of the international ProCredit Group headquartered in Frankfurt am Main. The group’s 12 banking subsidiaries operate in transition economies and developing countries and also include a bank in Germany.
The EBRD is Moldova’s biggest institutional investor. To date it has invested over €2.4 billion in 177 projects.
