EBRD boosts Moldovan SMEs with €40M fund
The European Bank for Reconstruction and Development (EBRD) is providing a €40 million fund to support small and medium-sized enterprises (SMEs) in Moldova.
This initiative aims to help these businesses overcome economic challenges and seize new opportunities arising from the country’s EU accession negotiations.
By sharing risks with local banks, the EBRD encourages increased lending to SMEs, stimulating economic growth and job creation. This strategic move positions Moldova for a prosperous future, empowering its businesses to contribute to the nation’s overall development.
Specifically, the EBRD and the local bank will share losses equally if a loan recipient defaults on their repayment obligations.
“This is a straightforward facility,” explained Francis Malige, EBRD Managing Director for Financial Institutions. “A local bank will expand its lending to SMEs, and the EBRD will share half the risk. This encourages banks to lend more, as we support them with EU funds.”
The EBRD representative emphasised that as EU accession negotiations progress, new opportunities will arise for SMEs. “This will unlock more opportunities. With EU accession negotiations underway, the Moldovan economy is well-positioned for growth. SMEs will benefit from increased investment opportunities, and this facility will accelerate their growth.”
Small and medium-sized enterprises are crucial for the sustainable growth of the Moldovan economy, constituting 98% of all businesses and employing 60% of the workforce.
Translation by Iurie Tataru
