WB might supplement credit line dedicated to exporting enterprises

The funds available through the Line of Credit, which was opened by the World Bank in six Moldovan banks ($22.5 million in total) to support exporting enterprises, were accessed at a ratio of over 70 percent (approximately $15 million). The information was communicated by Aurel Casian, director of the implementing unit of the WB's Competitiveness Enhancement Project, which administers the Line. Over the last 12 months, 40 exporting enterprises obtained loans through this Line. The loans are mainly aimed at satisfying investment and working capital needs. The size of an investment credit is the equivalent of 800,000 euros, and that of a working capital loan is 500,000 euros. The loans are granted in US dollars, euros or Moldovan lei, for terms of 8 and 4 years, respectively, carrying interest rates that are by 1.5-2% lower than the market average, said Aurel Casian. “Following the latest assessment, we conveyed to the World Bank the request to provide additional financing for this Line, considering the growing tendency of exports, as well as Moldova's objectives in the area of exports, which are to increase the share of high value-added production destined for export, and to diversify exports and markets. So we hope that the funds available through this Line will be supplemented from 2012”, said Casian. The Line of Credit in support of exporting enterprises was opened by the WB in the summer of 2010, after the Moldovan government requested additional financing specifically for this purpose. In response, the WB provided additional financing to the total amount of $24 million: $22.5 for the LoC and $1.5 for a grant scheme dedicated to enterprises seeking business consulting services.