EBRD announces boosting operations with Moldova

The First Vice President of the European Bank for Reconstruction and Development (EBRD) Varel Freeman is starting a three-day visit to Moldova on Tuesday, April 22, during which he will meet Prime Minister Zinaida Greceanai and her cabinet as well as Moldovan entrepreneurs and investors, Info-Prim Neo reports, quoting a communiqué by EBRD. Thanks to improvements in the general business climate in Moldova and further liberalisations of the trade regime with the EU, the EBRD this year expects to significantly increase its activities in the country. Last year the Bank signed seven projects worth €36 million, whereas in the first quarter of 2008 alone the EBRD has already signed three projects with a volume of €33 million. More than two thirds of the projects this year will be in the private sector. The press release finds out that, foreign investors have recently been particularly active in the banking sector which is expected to trigger more foreign direct investments also in other sectors. An annual inflow of $1 billion in remittances is not only an important contributor to the country’s consumption rate, but also represents high potential for banks. The EBRD to-date has provided its Moldovan partner banks with approximately €80 million. In March 2008 the Bank approved a new €70 million multi-currency framework under which local banks will receive loans for on-lending to local clients. Focus areas are small and medium-sized enterprises, energy efficiency and financial products such as mortgage finance, leasing finance and syndicated loans. Another key area of activity for the EBRD in Moldova is the infrastructure sector, where it is currently implementing a €35 million road project together with the World Bank and the EIB and exploring further projects in transport, energy and municipal infrastructure sectors. In its latest Strategy for Moldova, adopted in September 2007, the EBRD identified support for the enterprise, financial and infrastructure – including energy - sectors as key priorities for its work in the country. Since the start of its operations in Moldova in 1992, the EBRD to-date has signed 49 projects worth €205 million.