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EBRD extends financing options for Moldovan SMEs
€5.8 million loan will enable Banca Sociala to support local entrepreneurs
Private small and medium-sized enterprises (SMEs) across Moldova will gain
more access to finance following a €5 million loan from the EBRD to Banca
Sociala SA (BS). BS, one of the south-eastern European country’s biggest
private banks, whose strategic orientation is toward lending to SMEs, also
receives a Trade Facilitation Programme (TFP) input of $1 million. This will
support bank customers’ international trade transactions.
BS will use the EBRD funds to make medium- to long-term loans of up to
€500,000 to entrepreneurs and companies planning to develop or expand their
businesses. The TFP will support the development of Moldova’s external trade,
including that of BS clients.
Jean-Marc Peterschmitt, the EBRD’s Director, Bank Lending, said that key
challenges for any growing economy are a strong private sector and robust
international trade. Moldova’s SMEs are thus a crucial part of the country’s
transition towards a market economy. Even though demand for medium- to
long-term financing from local companies is increasing in Moldova, one of the
main problems for entrepreneurs today is the fact that local banks typically
offer shorter-term loans. Mr Peterschmitt added that the longer-term tenors
which will be offered by BS should support growth and promote competition in
the banking sector.
“BS is fully committed to the private sector,” said Mr. Vladimir Suetnov,
President of BS. “Provision of long-term finance to SMEs along with the
development of international trade, are the most important factors aiding
their solid and stable development,” Mr Suetnov added.
Established in 1991, BS employs around 933 staff in 18 branches and 66 units
across the country. The EBRD is the largest investor in Moldova, having
invested around €180 million in 36 projects.
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