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EBRD increases its support for Moldova's "micro" enterprises
As part of its continuing support for Moldovan micro-enterprises (businesses employing 20 people or less), the European Bank for Reconstruction and Development (EBRD) has expanded the Swiss-American Micro-Enterprise Programme to include a fourth bank, Universal Bank. The programme, established in September 1996 in cooperation with the Swiss and American governments, provides critical finance to Moldova's fledgling micro-enterprise sector.
"The large number of credit requests already processed by the participating banks in the programme reflects the substantial demand for micro-financing in Moldova. The addition of Universal Bank reflects the rapid growth of creditworthy demand," said Thomas Maier, Senior Banker in the EBRD's Moldova Team. He continued: "This will increase the availability of micro-enterprise financing and contribute to the long-term growth of a competitive micro-lending market."
At the end of April 1997, the three banks in the programme, Victoria Bank, Moldagroindbank and Mobias Bank, had disbursed a total of US$ 700,000 (ECU 560,000) to a large number of Moldovan micro-entrepreneurs. The inclusion of Universal Bank will widen the scope of the programme, increase competition in the banking sector and provide a further US$ 1 million (ECU 800,000) for loans to Moldovan micro-enterprises.
In expressing her satisfaction at Universal Bank's inclusion in the programme, Irina Podvisotskaia, Chairperson of Universal Bank, said: "By participating in this programme, we will have access to training in new credit techniques which will allow us to strengthen our relationship with a dynamic and profitable customer base."
The programme's funds of US$ 5 million (ECU 4 million) for the four Moldovan banks are being on-lent in amounts of up to US$ 20,000 (ECU 16,000). The investment facility consists of EBRD financing of US$ 3.4 million and Swiss Government co-financing of US$ 1.6 million. In addition, USAID and the Swiss Government are funding a US$ 1.24 million (ECU 992,000) technical assistance programme aimed at training the Moldovan banks in credit techniques.
EBRD commitments in Moldova at the end of April 1997 totalled around ECU 126 million in support of the private banking sector, critical infrastructure needs, agribusiness and other activities.
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