Small businesses in Moldova will be able to upgrade their operations to European Union (EU) standards with a new €10 million loan provided by the EBRD to ProCreditBank Moldova. The funds are provided within the EU4Business-EBRD credit line, to which the EU provides grant funding under its EU4Business initiative. An agreement to this effect was signed at a news conference in Chisinau on October 25. The new EBRD Managing Director for Eastern Europe and the Caucasus Matteo Patrone was presented in the news conference, IPN reports.
The funds will be available for investments to improve the products of Moldovan companies – both in the production process and in the quality of the end results – to strengthen their potential to succeed in the EU market and with EU competitors. Exporters must also meet EU standards in the areas of environmental protection, health and safety and product quality and safety.
“By meeting EU standards, businesses are in a position to further increase their exports. This is vital for them to grow – the EU is already Moldova’s biggest trade partner, with an estimated two-thirds of all exports heading to the single market. Making the most of this close relationship will be an important contribution to the country’s economic development,” said Alain Pilloux, EBRD Vice President, Banking.
Irina Coroi-Jovmir, Deputy CEO of ProCreditBank, said the minimum loan repayment period for final beneficiaries will be 36 months and the interest rate will vary between 4.5% and 6%, depending on the repayment period and the client’s capacity to cooperate. The Bank has internal capacity to release loans repayable even in 12 years. The grant component will be up to 15%, depending on the project. “We believe that ProCreditBank, together with the EBRD, will be able to support investments in interesting, modern projects, and in this way contribute to the development of our clients’ businesses and create a positive impact on the Moldovan economy,” stated Irina Coroi-Jovmir.
Urszula Pałłasz, Chargé d'affaires, the EU Delegation to the Republic of Moldova, said the EU has a stable and long-term relationship with the EBRD that will bring very god results to the countries that signed the Deep and Comprehensive Free Trade Agreement (DCFTA) - Moldova, Ukraine and Georgia. “On this occasion, I would like to highlight the EU’s commitment to supporting SMEs’ development, as a vector for inclusive economic development. This objective is stressed in the first priority – a stronger economy – of the Eastern Partnership’s 20 deliverables for 2020,” stated Urszula Pałłasz.
At the end of 2016, the EBRD provided a €10 million loan to Mobiasbancă - Groupe Société Générale to support small and medium-sized enterprises. Later, as part of the same program, the Bank offered additionally a €20 million loan to Mobiasbancă to meet the high demand for loans from local companies that invest in the improvement of quality of their products and services.
The EBRD is the largest institutional investor in Moldova. Since the start of its operations in the country, the Bank has invested close to €1.3 billion in more than 120 projects in Moldova’s financial, agribusiness, energy, infrastructure and manufacturing sectors.
