EBRD Support For Moldovan Private Sector Showcased At Moldova Business Week 2024
By Vanora Bennett
The European Bank for Reconstruction and Development (EBRD) showcased its support for Moldova’s private sector at the high-profile Moldova Business Week 2024 today, supporting a €1.7 million(US$1.9million) project, with its partner bank maib, to lend to the country’s leading locally owned garment manufacturer, IUVAS.
IUVAS sells clothing for men, women and children through a network of 37 stores and has strong brand recognition. The loan will finance both ongoing business and expansion, and IUVAS will benefit from EBRD’s Skills in Business programme which will help improve its workforce management.
Skills in Business (SiB) helps improve eligible companies’ human resources strategy, competencies, internal organisational structure, talent management and retention. It aims to offset the problems Moldova experiences with labour force management, including high staff turnover and deteriorating labour skills due to the outward migration of skilled citizens.
SiB falls within the EBRD’s Risk Sharing Framework (RSF), which is implemented in close cooperation with local banks. The arrangement supports partner banks in channelling much-needed funds and creating new growth opportunities for local enterprises. The financing covers working capital needs of domestic businesses, helping them expand their operations and improve their climate resilience.
The EBRD’s focus for Moldova is on creating an environment that supports private-sector activity, promoting European standards across sectors and regional integration to bring domestic producers closer to their markets, as well as developing efficient and sustainable public utilities which have a direct impact on people’s lives.
“This cooperation is part of our mission to ensure that Moldova’s private sector – both smaller companies such as IUVAS and large corporations – have access to finance and expertise, allowing them to reap the fruits of enhanced EU integration and internationalisation,” said the EBRD’s visiting Managing Director for Ukraine and Moldova, Arvid Tuerkner, who addressed the Moldova Partnership Platform also meeting in Chisinau this week.
“SMEs are the backbone of the Moldovan economy both in terms of revenues and employment opportunities, and it is key to provide customised support for sustainable growth. EBRD has an extensive SME support programme with a wide variety of tools,” said Head of EBRD in Moldova, who signed the agreement for the EBRD Catarina Bjorlin Hansen,.
“I would like to thank EBRD and IUVAS for this cooperation. I am delighted that this innovative risk-sharing deal enables maib to deliver more financial support to the real economy. Through this partnership we are able to finance a manufacturing business on the ground, which will create jobs, ultimately benefitting both economy and country,” said maib CEO Giorgi Shagidze.
The EBRD has deployed more than €1 billion in Moldova since the beginning of Russia’s war on neighbouring Ukraine in 2022, which put unprecedented pressure on the Moldovan economy. Overall it has invested in a total of 177 projects in Moldova for nearly €2.5 billion.
