Black Sea Bank looks to extend lending activity in Moldova

The Black Sea Trade and Development Bank (BSTDB) is looking to diversify its portfolio of loans in Moldova, announced BSTDB President Andrey Kondakov at a presentation of the Bank's strategy for Moldova for the period 2011-2014, Info-Prim Neo reports. Currently the Bank finances 15 Moldovan projects valued at 54 million euros. These are mostly projects in the banking sector. “While the projects in the banking sector are successful, we want to identify clients dealing in the real sector. We hope that in the next four years we will have 4 or 5 real-sector projects valued at some 30 million euros”, said Andrey Kondakov. The BSTDB doesn't own interests in any Moldovan banks, but will be willing to consider this option if such offers appear, added Kondakov. Moldova owns 1% of the BSTDB's shares and uses 2.5% of its loan portfolio. “Apparently this is not much, but at a closer look one will learn that at one euro invested in Moldova's economy, there are 13 euros contributed by the Bank” said Andrey Kondakov. Over 11 years from foundation, the Bank financed over 200 in the region's countries. The value of the current loan portfolio is 1.5 billion euros invested on 106 projects. “It is important that the Bank can offer loans cheaper and for a longer period than those offered by the local banks. Of course, the projects financed by the Bank are currently limited to the banks, which are only an intermediary, through which money is eventually channeled to the small and mid-sized enterprises”, said Elena Matveev, department head at the Moldovan Ministry of Finance, and concurrently BSTDB co-governor. The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. With an authorized capital of SDR 3 billion, the Bank supports economic development and regional cooperation by providing trade and project financing, guarantees, and equity for development projects supporting both public and private enterprises in its member countries.