EBRD to provide €15 million to boost Moldova SMEs

Microfinance Focus, Nov. 23, 2009: European Bank for Reconstruction and Development (EBRD) has announced it will lend €15 million to C. B. Moldindcon Bank (MICB) to boost its funding to small and medium enterprises (SMEs). This is in response to the the economic downturn, which has significantly limited the lending capacity of banks in Moldova, said a statement.
The credit will be used to finance investments and working capital of Moldovan SMEs with medium and long-term loans worth €1 million. The EBRD loan will also be supported by technical assistance grants worth €90,000 under the Moldova-Financial Sector Framework.
“The credit line to Moldindconbank will increase the availability of the much needed financing to SMEs and will support their development,” said Nick Tesseyman, EBRD Business Group Director for Financial Institutions. “The co-operation with the EBRD is of significant importance for Moldindconbank, especially when this is dedicated to the SME sector which is important for the country development,” said Svetlana Banari, President of MICB.
Moldindconbank is the fourth largest bank in Moldova by assets and third by gross loans and total deposits, holding approximately 11% market share.
To date the EBRD (European Bank for Reconstruction and Development) has committed more than €300 million in various sectors of the Moldovan economy.

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