EBRD launches portfolio risk-sharing programme with Moldovan banks

By Vanora Bennett

The European Bank for Reconstruction and Development (EBRD) has extended an unfunded risk-sharing facility to leading Moldovan bank, maib, to unlock €40 million(US$31.6 million) of new finance for Moldova’s businesses. Maib and OTP Bank, which earlier signed a similar €30 million agreement, will be the pilots for the instrument in Moldova.   

The signing took place at a formal launch ceremony for the product in Chisinau, attended by EBRD Managing Director for Financial Institutions Francis Malige and senior representatives from the European Union delegation, maib and OTP Bank.

The launch of portfolio risk sharing facility in Moldova builds on EBRD success in Ukraine, Albania and Bosnia and Herzegovina with similar portfolio guarantee instruments. 

The risk-share guarantee covers up to 50 per cent of maib’s credit risk on newly originated financing worth €40 million to micro, small and medium businesses (MSMEs). The facility’s risk-sharing structure enhances partner banks’ capacity to provide access to finance to MSMEs in Moldova by unlocking the ability of these financial institutions to channel excess liquidity into new lending using their own funds. 

These pilot implementations in Moldova, partnering with long-standing EBRD clients, aim to broaden the spectrum of EBRD products in the market with a solution designed to reduce risk for the EBRD’s partner financial institutions and to address financing gaps for MSMEs. 

MSMEs are critical for sustainable growth of the Moldovan economy, accounting for 98 per cent of all business in Moldova and employing 60 per cent of the country’s workers.

The EBRD facility is supported by first loss risk cover provided by the European Union via the European Fund for Sustainable Development Plus (EFSD+), which promotes sustainable investments in EU partner countries.

“We are delighted to be able to offer this product, which enhances the ability of Moldovan banks to support the small businesses which form the background of the national economy. This innovative programme is especially important given the challenges Moldovan business has faced in recent years,” said EBRD Managing Director, Financial Institutions Francis Malige.

“The EFSD+ guarantee agreement on financial inclusion is also an important part of the EU4Business Initiative, which by integrating three pillars of action – access to finance; business development services and a business enabling environment – is supporting Moldova in its path towards building a sustainable and inclusive market economy, in which SMEs are the main driver for innovation and job creation,” stated Deputy Head of Cooperation, Delegation of the European Union to the Republic of Moldova Adam Grodzicki.

“As Moldova’s leading financial institution, maib is deeply committed to creating opportunities to thrive for micro, small, and medium enterprises (MSMEs)—vital drivers of strong economic growth, high resilience, and sustainable job creation across all sectors. In partnership with the EBRD, we are pleased to announce the launch of an innovative €40 million risk-sharing programme. This initiative enables maib to further expand financing for MSMEs, empowering local entrepreneurs to further grow, drive innovation, and strengthen their contribution to Moldova’s strong and sustainable development,” said maib’s Chief Financial Officer Macar Stoianov. 

”The risk-share guarantee is a product much needed on the Moldovan market. MSMEs need accessible finance to seize on the current business opportunities and sustainable approaches to ensure long-term success. We are happy our colleagues from maib are joining us in this project. Together we will be able to unlock 70 million in secure, accessible finance for MSMEs,” said Executive Committee President and Chief Executive Officer of OTP Bank Bogdan Spuza,.

Maib, Moldova’s largest bank with a more than 30 per cent market share in the country, is a longstanding EBRD client, partnering since 1995. Since 2018, maib’s largest minority shareholder has been a consortium of investors composed of the European Bank for Reconstruction and Development, Invalda INVL, an asset management group in the Baltics, and Horizon Capital, an Emerging Europe-focused private equity fund manager.   

OTP Bank is one of four systemically important banks in Moldova, with an excellent track record in implementing projects ranging from trade finance to energy efficiency as well as MSME credit lines. The EBRD has had a relationship with OTP Bank since 1996. 

The EBRD is Moldova’s largest institutional investor. To date it has invested nearly €2.5 billion in 177 projects in the country.