With the European Union’s support, small businesses in Moldova will be able to raise their competitiveness with investments enabled by better access to finance thanks to an EBRD loan of €7.5 million to Moldova-Agroindbank.
The funds will complement a previous loan from the EBRD of €5 million to the bank. Both loans are provided under the EU4Business-EBRD credit line – a joint programme by the EBRD and the EU to support investments by local companies that are aiming to align their products and services with EU standards, improve workplace health and safety and foster sustainable environmental practices.
Borrowers under the programme are eligible to receive up to 15 per cent in EU grants upon the successful completion of the investment together with local and international consultancy, which comes free of charge and is also generously funded by EU grants under the EU4Business initiative. The investments aim to increase companies’ competitiveness at home and boost trade with the EU single market.
The EU4Business-EBRD credit line was launched in Moldova in 2017. To date, more than €60 million in loans have been provided to local partner banks for on-lending. More than 180 businesses in sectors from manufacturing to agriculture and from construction to medical services have benefited from loans as well as from up to €2 million in EU grants in total.
Angela Sax, EBRD Head of Moldova, said: “More companies will now have the opportunity to step up product quality, improve competitiveness and trade with confidence in the EU market. The European Union is already Moldova’s largest trading partner and we see tangible results of the investments that translate into improved working conditions, more knowledgeable and skilled staff, new technologies, better products and competitive companies.”
Serghei Cebotari, Chairman of the Management Board of Moldova-Agroindbank, said: “I would like to thank our development partners, the EBRD and the European Union for their confidence and support in the development of Moldova’s SME sector. I am glad to announce that the first loan provided to MAIB under the EU4Business-EBRD credit line has been fully used, which confirms that this kind of financing has been much awaited and needed by MAIB clients. I am confident that the €7.5 million loan will be in high demand too and will help Moldovan SMEs develop and enhance their competitiveness.”
Moldova Agroindbank is the leader of Moldova’s banking sector, topping bank performance rankings and holding about one-third of the market in terms of loans, deposits, assets and profit. Through its wide network of 66 branches and 107 agencies, the bank provides its services to about 1 million clients, including private entities, SMEs and big companies.
The EBRD is the leading institutional investor in Moldova. Since the start of its operations in the country, the Bank has invested over €1.3 billion in 131 projects in Moldova’s financial, agribusiness, energy, infrastructure and manufacturing sectors.