Project description
and objectives:
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The proposed project is a credit line for up to EUR 5 million in two tranches
to BS to be on-lent by BS to SMEs in Moldova. The proceeds of the credit line
will be used by BS to provide medium-term financing to SMEs for production,
investment, trade, services and working capital needs.
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Transition impact:
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Transition impact potential derives from the demonstration effect associated
with supporting the growth of SME lending which is still underdeveloped in
Moldova. Development of a market for medium term lending will further build up
on the successful implementation of the other credit lines granted by the EBRD
to Banca Sociala in 2005 and 2006, respectively. Supporting the growth of BS
will strengthen the banking sector and thus increasing competition.
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The client:
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BS is the sixth largest Moldovan bank with around 7% market share of total
banking assets at end-2006, total assets of over EUR 100 million, total
equity of EUR 14.2 million and net profit of EUR 0.5 million (as of 31 March
2007, MAS, unaudited). Shareholders include 493 individuals and companies,
most of them being Moldovans.
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EBRD finance:
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A loan for up to EUR 5 million extended by the Bank to BS.
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Total project cost:
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EUR 5 million equivalent.
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Environmental impact:
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BS will be required to adopt the EBRD’s Environmental Procedures for
Intermediated Financing through Local Banks to sub-projects financed under the
Credit Line. This includes adherence to the FI Environmental Exclusion and
Referral List, compliance with the applicable national environmental, health
and safety, labour and public consultation legislation, appointment of a
member of senior management with overall responsibility for the implementation
of environmental procedures, and submission of annual environmental reports to
EBRD.
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Technical
cooperation:
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None.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Mr. Vladimir I. Suetnov, President
Banca Sociala SA
61,
Banulescu-Bodoni Street
MD 2005, Chisinau,
Republic of Moldova
Phone: +373 22 22 14 81
Fax: +373 22 22 11 23
E-mail: office@socbank.md
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EBRD contact:
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Till Weidemueller, Operation Leader: weidemt@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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