December 23 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said that together with the European Union is providing a financial package of up to 25 million euro ($28 million) to Moldova-Agroindbank (MAIB), to be used to finance investments by local small and medium-sized enterprises (SMEs).
The package includes a 20 million euro facility, where the EBRD will share MAIB's exposures to local enterprises through unfunded risk-sharing participation, akin to providing a guarantee, the EBRD said in a press release on Wednesday.
MAIB will also receive 5 million euro loan under the EU4Business-EBRD credit line for on-lending to local firms.
The SMEs will use the financing to upgrade products and services in line with EU standards, increase competitiveness locally and grasp international trade opportunities. At least 70% of the loan is expected to finance investments in green technologies.
The EU is complementing the EBRD financing with grants and free-of-charge technical assistance to borrowers under its EU4Business initiative.
As many as 350 Moldovan companies have already benefited from the programme since its launch in 2016.
Agroindbank is the largest bank in Moldova serving 1 million clients through a network of 58 branches and 86 agencies.
($= 0.885 euro)
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