OTP Bank will implement a new European Bank for Reconstruction and Development (EBRD) risk sharing facility, unlocking €30 million of new financing for Moldova’s micro, small and medium businesses (MSMEs), with a focus on agriculture and trade.

This is the first facility of its kind signed in Moldova, building on the EBRD's success in Ukraine, Albania and Bosnia and Herzegovina with similar guarantee instruments.

The risk-sharing guarantee covers up to 50% of OTP Bank's credit risk, enabling up to 30 million euros of newly generated loans. To promote sustainable investment, the project benefits from a primary risk cover provided by the European Union through the European Fund for Sustainable Development Plus (EFSD+).

“This product offers a new and effective solution that is designed to de-risk partner financial institutions and address MSME financing gaps by unlocking the ability of financial institutions to channel excess liquidity into new lending. It allows financial institutions to extend more credit in priority segments, further improving access to finance for the private sector,” said EBRD Head of Office for Moldova, Catarina Bjorlin Hansen, at the signing ceremony in Chisinau.

“In recent years, regional and local risks have reduced the market’s ability to provide accessible finance. With EBRD’s innovative facility, we will be able to unlock additional liquidities to bridge that gap – to fuel the engine of Moldova’s economy. As a sustainability oriented bank, we look forward to facilitating ESG standards adoption through the EFSD+ component,” said Bogdan Spuza, Executive Committee President – CEO, OTP Bank.

By diversifying available financing instruments, the risk-sharing guarantee makes an important contribution to the sustainable development of MSMEs, which account for 98 per cent of all business in Moldova and employ 60 per cent of the country’s workers.

---

OTP Bank Moldova is one of four systemically important banks in Moldova, with an excellent track record in implementing projects ranging from trade finance to energy efficiency as well as MSME credit lines. The EBRD has had a relationship with OTPM since 1996.

The EBRD is Moldova’s largest institutional investor. To date it has invested nearly €2.5 billion in 177 projects in the country.

*******
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.