Moldovan companies can now benefit from loans denominated in the local currency, leu, provided by the European Bank for Reconstruction and Development (EBRD) and its partner financial institutions thanks to an agreement with the National Bank of Moldova (NBM), IPN reports, quoting a press release of the NBM.

The EBRD has secured reliable access to leu liquidity in the form of swap transactions up to a total of US$ 30 million and will continue local currency lending to companies to help them mitigate risks related to currency exchange.

The agreement comes after the EBRD implemented similar mechanisms in Ukraine, Georgia and Azerbaijan. Now the NBM and EBRD identified acceptable conditions for implementing the project in Moldova too.

The agreement is part of the EBRD’s stepping up support for local companies as Moldova’s economy is confronted with the impact of the coronavirus pandemic.

The approval of the agreement does not involve costs for the NBM.

A swap is an agreement between two counterparties to exchange financial instruments or cashflows or payments for a certain time.