|
Entrepreneurs in Moldova get more access to finance
EBRD $6 million loan to Victoriabank to help meet growing demand
Victoriabank SA, a private bank in Moldova, is the first to receive a loan
under a new €60 million EBRD co-financing facility that aims to meet the
growing demands of medium-sized business entrepreneurs in some of the poorest
countries in eastern Europe, including Moldova.
The $6 million loan will enable Victoriabank to provide owners of successful,
private businesses in Moldova with more and longer-term access to finance to
support, among other things, the acquisition, expansion or modernisation of
their existing businesses. It will also address their working capital needs,
including export and pre-export financing.
George Krivicky, Director of the Early Transition Countries Initiative at the
EBRD, said there is a clear gap in the market where successful medium-sized
business entrepreneurs are inhibited by a lack of access to sufficient amounts
of finance. In countries like Moldova, credit is constrained by the relatively
small size of the banking system, single-borrower exposure limits and lack of
medium-and long-term funds. The EBRD’s new facility is designed to overcome
these obstacles by working with the best local banks to boost this dynamic
segment of the private sector, which plays a crucial role in the transition
process, Mr Krivicky added.
Under the facility, the EBRD will provide a credit line to Victoriabank, from
which private businesses will be eligible to draw loans of around $1-2
million. The credit risk on individual sub-loans will be divided equally
between the EBRD and Victoriabank.
Established in 1990, Victoriabank, the country’s first private bank, has grown
to become one of its largest in terms of assets, deposits and lending
activities. The EBRD has worked with Victoriabank since 1995, providing around
€16 million in investments that include acquiring a 15 per cent stake in the
bank, providing credit lines to support micro, small and, medium-sized
enterprises, and promoting trade activities.
The EBRD is the largest single investor in Moldova, with more than €170
million invested in 29 projects.
|
