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EBRD, EU lending 50 mln euro to Moldova Agroindbank to back firms affected by Ukraine war

EBRD, EU lending 50 mln euro to Moldova Agroindbank to back firms affected by Ukraine war B.C. Moldova Agroindbank - the largest commercial bank in Moldova

CHISINAU (Moldova), May 12 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said that together with the European Union is is providing a financial package of up to 50 million euro ($52 million) loan to Moldova-Agroindbank (MAIB), for on-lending to local companies directly or indirectly affected by the economic consequences of the war in Ukraine.

The EBRD is providing 35 million euro of the total financing, it said in a press release on Wednesday.

The financing falls within the EBRD’s 2 billion euro Resilience and Livelihoods framework, meant to support companies and countries directly or indirectly affected by the war. This loan will strengthen and diversify MAIB’s funding base and will support it in deploying finance to private businesses in Moldova during the crisis caused by the war on Ukraine.

The EU is providing an additional 15 million euro, which will go to extending MAIB’s participation in the EU4Business-EBRD Credit Line aiming to finance investments by small and medium-sized enterprises (SMEs) into upgrades of technology, making them more competitive and better able to export their products.

Also, the EU is complementing the EBRD financing with grants and free-of-charge technical assistance to borrowers under its EU4Business initiative.

MAIB is the largest systemic bank in Moldova with total assets of 1.9 billion euro, total equity of 278 million euro, a loan portfolio of 1 billion euro as of end-March, and a market share of 33%, the EBRD noted. MAIB is 41.09% owned by HEIM Partners, a consortium of investors, including the EBRD, Horizon and Invalda. Other minority shareholders include management, staff and local companies.

The bank offers a wide range of services to its 900,000 corporate, MSME and retail clients through a wide distribution network of 58 branches and 86 agencies and digital channels, employing 2,300 staff.

($= 0.9584 euro)

Moldova-Agroindbank SA is among the biggest banks in SEE, for more reference take a look at Top 100 banks

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