A financing package for EUR 50 million provided by European Bank for Reconstruction and Development (EBRD) to maib for sustaining the national economy in the face of neighboring war in Ukraine was signed on May, 11, at EBRD Annual Meeting in Marrakech by Giorgi Shagidze, Chief Executive Officer of maib, and Francis Malige, the EBRD’s Managing Director for Financial Institutions.
The financing package is composed of two elements.
The first loan consists of €35 million within the EBRD Resilience and Livelihoods Framework pledged to support the countries and companies directly or indirectly affected by the war in Ukraine. The financial package will strengthen and diversify maib’s funding base for sustaining the local business.
The second loan of €15 million extends maib’s participation in the EU4Business-EBRD Credit Line intended to finance the small and medium-sized enterprises (SMEs).
The EU4Business-EBRD Credit Line is supported by the EU grants and free-of-charge assistance to borrowers. Under the agreement, maib’s will continue to support SME clients to upgrade their products and services in line with the EU standards, to increase competitiveness locally and to realize international trade opportunities. This loan will contribute to the aims of the Eastern Partnership (EaP) Economic and Investment Plan, which include supporting 50,000 small- and medium-sized enterprises (SMEs) in Moldova. Maib has previously received €30 million and finance about 50 SME clients under this programme.
This financing fully aligns with maib’s strategy and development in small business lending. In 2021 maib recorded a 35% increase in SME loans year over year, while extending its already leading position in SME loans by 4%. At the end of 2021 maib’s market share in SME lending was 26.3%.
Francis Malige, EBRD’s Managing Director for Financial Institutions:
”We are pleased to support our long-standing client, maib, to reinforce its funding base in the challenging economic environment caused by the war on Ukraine and enable it to expand lending to Moldova’s private businesses”.
Giorgi Shagidze, maib CEO:
“This is a remarkable contribution to maib’s strategy to encourage the small business in Moldova. This loan will help us assist the businesses cover their financing needs in light of the geopolitical events. I would like to express my gratitude to EBRD and the EU for their partnership with maib and continuous support for the Moldovan economy. We are very pleased and grateful to be able to help our clients making loans more accessible to enable their growth”.
About EBRD
EBRD is a multilateral bank that promotes the development of the private sector and entrepreneurial initiative in 38 economies across three continents. The bank is owned by 69 countries as well as the EU and the EIB. EBRD investments are aimed to make the economies in its regions competitive, well governed, green, inclusive and integrated.
About maib
Maib is the largest bank in Moldova, accounting for 31.4% of country’s banking assets and 34.9% in loans as of 31 December 2021. The bank provides 26% of all mortgage loans extended to Moldovans, serves over 35% of Moldova’s population and is among the largest employers in the country. The bank is well capitalized with Tier 1 Capital ratio of 21.1% as of 31 December 2021. Maib is widely recognized for its customer service and product innovation. Since 2018, maib’s largest shareholder is a consortium of investors composed of European Bank for Reconstruction and Development, Invalda INVL, a leading asset management group in the Baltics, and Horizon Capital, an Emerging Europe focused private equity fund manager.
*******
DISCLAIMER: Issuers of press releases – not the news agency IPN – are fully responsible for the accuracy and essence of the content submitted for publication and/or distribution.