The EBRD is continuing its support to the real economy in Moldova with a new €3.5 million loan to Moldindconbank, the third largest bank in the country, for on-lending to small and medium-sized enterprises (SMEs).

With the new EBRD loan Moldindconbank will be able to expand its SME lending programmes, contributing to the development of the private business sector in Moldova.

As the economic recovery gets its pace and demand for financing grows among Moldovan SMEs, the availability of bank loans to businesses remains limited.

“We are proud to continue our long-standing partnership with Moldindconbank in addressing the financial needs of Moldova’s private sector. With this new credit line we will help small businesses in becoming stronger and more competitive,” said Francis Malige, EBRD Director for Financial Institutions in Western Balkans, Belarus, Moldova and Turkey.

Moldindconbank has been cooperating with the EBRD for many years, starting with a Trade Facilitation Programme granted by the EBRD in 2001 and new credit lines disbursed in 2009 and 2010, respectively. The 2009 credit line was dedicated for on-lending to SMEs. The beneficiaries were private companies employing up to 250 workers, with a couple of borrowers being micro-entrepreneurs with just up to 10 employees.

“The long-term funding remains a scarcity in Moldova, as only few commercial banks can afford lending programmes to private businesses. Together with the EBRD we are making a difference to the lives of Moldovan small businesses. We were able to disburse to successful entrepreneurs nearly 100 sub-loans of slightly under €250,000 on average. Over one-third of our borrowers live outside Chisinau,” said Svetlana Banari, the President of Moldindconbank.

Since the beginning of its operations in Moldova, the EBRD has committed over €460 million in various sectors of the economy, mobilising additional investment in excess of €320 million.