The International Finance Corporation offers a $7 million financing package to Mobiasbanca Bank

The Commercial Bank Mobiasbanca obtained a $7 million financing package, offered, for the first time to a bank from the Republic of Moldova by the International Finance Corporation, a private sector arm of the World Bank Group. The agreement was signed on Wednesday, April 12 by Martin Kimming, IFC’s representative and by the president of Mobiasbanca, Nicolae Dorin. According to Nicolae Dorin, the $7 million financing package consists of a $5 million loan for on-lending to small and medium businesses and a $2 million trade finance guarantee facility under IFC’s Global Trade Finance Program. Nicolae Dorin considers positive IFC’s decision to finance a bank from the Republic of Moldova in the context when the country presents insecure terms for abroad sponsors. Nicolae Dorin specified that the first $2, 5 million instalment will be transferred by the middle of this year. The money will be used to supply financial services to small and medium business and a priority will be financing bank’s clients. The applicants will not be limited neither in the sum of the loan nor in the terms of reimbursement and the risks evaluation will be exclusively the decision of Mobiasbanca, said Nicolae Dorin. Due to IFC’s finacing package, added the cited source, small and medium enterprises will have access to long time funding – up till 6 years. The Global Trade Finance Program, considered by Nicolae Dorin “exotical”, will enlarge the bank’s opportunities to issue documentary instruments, like letters of credit and guarantees, confirmed with the world leading banks for the term of 18 months. Stating that in the future will be better collaboration circumstances; Martin Kimmig explained the decision to offer the first financing package to Mobiasbanca by the fact the bank is stable and has a good management. Even if IFC pledged to support all the banks from Moldova, Martin Kimming said there are no plans to sign such agreements. He also declared that IFC will support Mobiasbanca providing a range of loan-based and fee-based products. Referring to the possibility of increasing the financing package of Mobiasbanca, Martin Kimming declared that increasing bank’s capital means increasing its financing support. “IFC calculates the risk by the bank’s capital and together with the capital’s growth; the credits will also grow”, states the representative of IFC Through its investments and loans, the International Financing Corporation wants to directly support the development of the small enterprises from the Republic of Moldova, which joined IFC in 1995. Since then IFC has invested $97 million in the country, including $25 million in syndicated loans across a variety of sectors.