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Moldova's largest private bank gains further EBRD support
Moldova's financial sector will be boosted by a US$ 8 million (ECU 6.9 million) loan from the European Bank for Reconstruction and Development (EBRD) to Moldova Agroindbank (MAIB), the country’s largest commercial lender. Extended for a period of five years and guaranteed by the Moldovan government, the loan carries the option of convertibility into ordinary shares of MAIB. The operation will strengthen MAIB’s balance sheet and enable it to support the consolidation of the share capital structure.
"Sound and efficient financial institutions are the core agents in the development of a healthy market economy," said Kurt Geiger, Co-Director of the EBRD’s Financial Institutions Team. "By supporting the shareholder restructuring of Moldova's largest commercial bank, the EBRD will assist the financing of small and medium-sized private corporate customers and will contribute to a sound private banking system."
"MAIB has a long-standing and excellent cooperation with the EBRD which started back in 1994. Since then, we have been able to develop a strong professional dialogue and it is our intention to continue this prestigious relationship on an even higher level in the future," said Mrs Natalia Vrabie, Chairperson of MAIB. "The willingness of the EBRD to become a shareholder in MAIB in the future shows the strength of the EBRD’s support for our bank."
"The EBRD is one of the key supporters of Moldova’s transition to a market economy and its involvement in our banking sector represents a strong proof that the EBRD’s commitment to Moldova continues, particularly in these difficult times," said Anatol Arapu, Minister of Finance of the Republic of Moldova. "Moldova will continue to implement the measures agreed with the international financial institutions in order to speed up the reform process."
MAIB started operations in 1991 as a joint-stock company by taking over assets and clients from the Soviet-era Agroprom Bank. Today MAIB is the country's largest commercial bank in terms of both total assets and total equity and is regarded as a well-managed and profitable organisation. MAIB maintains one of the largest domestic branch networks, comprising 46 branches throughout the country, covering every major population centre.
The EBRD and MAIB have developed a clole cooperation over the past four years under SME (small and medium-sized enterprises) and micro-lending credit lines. The Bank has a total commitment to MAIB of US$ 22 million (ECU 19 million). Today’s financing brings the EBRD’s total commitments to Moldova to ECU 149 million, of which ECU 30 million is in the financial sector.
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