By Vanora Bennett        

The European Bank for Reconstruction and Development is providing new €15 million loan to OTP Bank in Moldova under the EU4Business-EBRD Credit line.

The project will enable OTP Bank to continue supporting the investments of local micro, small and medium-sized enterprises (MSMEs) in upgrading their technology and equipment necessary to meet EU standards, to boost competitiveness and support export potential. At least 70 per cent of the loan is expected to finance investments in green technologies. Moldova was granted candidate status to join the EU in June. This fresh financing will certainly contribute to achieving the EU Economic and Investment Plan target to support 50,000 MSMEs in Moldova.

Small businesses are the backbone of the Moldovan economy and supporting them is vital to secure sustained economic growth despite the negative impact of war in the neighbouring Ukraine. Investments in equipment upgrades and energy efficiency are critical for their competitiveness and help minimise the negative impacts of the war and record high energy prices.

OTP Bank in Moldova has been an EBRD client since 1996. The bank, ranked third in Moldova in terms of total assets, is 98.3 per cent owned by OTP Bank Nyrt in Hungary.

The EBRD is a leading institutional investor in Moldova. To date, the Bank has invested more than €1.8 billion in the country through 158 projects, with 57 per cent of its portfolio in sustainable infrastructure.