The small and medium-sized enterprises (SMEs) can ask for investment support to improve products and services. The EBRD, the European Union and Mobiasbanca - Groupe Société Générale on April 5 launched the first credit line in Moldova that will enable SMEs to take advantage of opportunities under the Deep and Comprehensive Free Trade Area (DCFTA) with the EU, IPN reports.
This project will support the integration of the Moldovan economy into European markets. The EU4Business-EBRD Credit Line aims to help local SMEs invest in improvements to their product quality and modernization of their services to meet EU standards.
EU4Business is also providing SMEs with grant incentives of up to 15 per cent and funding advisory services by local and international consultants. The package offers Moldovan SMEs long-term financing for investment in new technologies and equipment in compliance with EU standards; cash-back incentives of up to 15 per cent of the investment financed by the partner bank, payable upon completion of the investment project; technical advice available free of charge from local and international experts.
The project envisions three different approaches: LTE suitable for companies that buy equipment and technology with loans of up to €300,000; SPS-FS that is a simplified procedure for obtaining loans of up to €300,000 for investment in improving quality and safety of agricultural products and foods, and the complex approach with loans of up to up to €3 million available for most of the modernization projects in industry or service sector.
Attending the launch, EU Ambassador to Moldova Pirkka Tapiola said the SMEs play an important role in the economy of a state. He noted that together with their partners from the EBRD they will help Moldova implement much needed reforms and capitalize to the maximum on the opportunities for economic success for the Republic of Moldova that DCFTA offers.
Elena Guzun, Commercial Director of Corporate Banking at Mobiasbanca, stated that a stimulus is needed to motivate businesses and this is the extension of markets. But to penetrate new markets, the EU standards should be met. The credit line provides support in this regard.
Dimitri Gvindadze, Head of the EBRD office in Chisinau, said a successful private sector is a cornerstone of the economic development of Moldova and the EBRD is keen to continue its support for businesses with this new credit line. The credit line, and the valuable support from the EU, will help to improve product standards and services so that businesses can seize new market opportunities offered by the DCFTA with the EU. Mobiasbanca is the first partner of this program, but more partners will be yet identified.
The EBRD announced the €10 million loan to Mobiasbanca - Groupe Société Générale in late 2016. Under its EU4Business initiative, the EU is supporting the credit line through investment incentives for eligible SMEs and by funding free technical advice from local and international experts.
