New €300m EBRD program for Moldova

The European Bank for Reconstruction and Development will offer Moldova 100 millions euros next year. The financing priorities remain the same: infrastructure development, drinking water supply and sewerage, energy efficiency and supporting small and medium businesses through lending programs in local banks, Info-Prim Neo reports. Kurt Bayer, EBRD director for Austria, Israel, Malta, Cyprus, Kazakhstan and Bosnia & Herzegovina, stated during a press conference that despite the crisis EBRD didn’t cut funding for Moldova. “We realize the investment need in Moldova is high and we’re sure money will come, including through EBRD funding. The new 3-year program of financial assistance for Moldova will be examined and approved by EBRD board in November. It is worth 300 millions euros and will start January 1, 2011. Besides funds, EBRD will provide its Moldovan partners with consultancy and expert analysis”, Bayer stated. He also stressed EBRD directors were impressed with the economic stabilization and restart reforms. They think Moldova can overcome the GDP drop of 6.5% registered in 2009 and are optimistic regarding the economic growth. Initially, the EBRD forecast was a 4% growth, compared to 1.5-2% IMF and WB prognostics. “We hope the political events that will take place don’t slow down the reforms and economic growth in the second half of the year”, he said. Till now, EBRD invested about 400 millions euros in various sectors of Moldovan economy. Besides, EBRD resources attracted an additional 3330 millions euros. EBRD is a shareholder in 2 Moldovan banks and some local private companies. EBRD is present in 61 countries and 2 NGOs. Its main goal is supporting the transition to market economy in Central and East European countries and Asia.