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EBRD supports SMEs in Moldova
$5 million loan will enable MICB to support local entrepreneurs
Entrepreneurs across Moldova will gain more access to finance following a $5
million loan from the EBRD to Moldindconbank SA (MICB), one of the country’s
largest private banks specialising in lending to small and medium-sized
enterprises (SMEs).
MICB will use the EBRD funds, in turn, to make medium- to long-term loans of
up to $500,000 to entrepreneurs and private businesses across various sectors
of the economy who wish to develop or expand their businesses.
Jean-Marc Peterschmitt, Director for Bank Lending at the EBRD, said one of the
key challenges for any growing economy is to nurture the growth of a strong
private sector. The Bank, together with partners like MICB, is helping support
local SMEs, which are a crucial part of the country’s economic development and
transition towards a market economy.
Demand for medium- to long-term financing from local companies is increasing
in Moldova, but one of the main problems for entrepreneurs today is the fact
that only short-term tenors are offered by local banks. Mr Peterschmitt added
that the longer-term tenors which will be offered by MICB should act as a
demonstration affect amongst local banks ultimately promoting a competitive
environment in this sector.
Established in 1991, MICB employs around 750 staff in 21 branches across the
country. This latest loan builds on cooperation between the two institutions
which dates to March 2000, when MICB received $1.5 million in backing from the
Bank’s Trade Facilitation Programme, which supports its customers’
international trade transactions.
The development of the Moldovan private sector is a key strategic orientation
of MICB said Victor Cibotaru, President of MICB. MICB is fully committed to
the private sector and the long term finance provided to the Moldovan private
SMEs is one of the most important thing for their solid and stable
development, Mr Cibotaru added.
The EBRD is the largest investor in Moldova, having invested around €160
million in 32 projects across the country.
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