March 31 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said that in partnership with the EU, it is extending a 10 million euro ($10.9 million) loan to ProCredit Bnak Moldova in support of investment financing for micro, small and medium enterprises (MSMEs).
The loan will enable ProCredit Bank Moldova to support MSMEs in Moldova to upgrade their equipment, products and services in line with EU standards, while boosting competitiveness and seizing international trade opportunities, the EBRD said in a press release on Thursday.
At least 70% of the loan provided under the EU4Buiness-EBRD Credit Line is expected to finance investments in green technologies. The EU4Buiness-EBRD Credit Line is a joint initiative of the EU and EBRD that facilitates financial and advisory support to SMEs.
“Small businesses are the backbone of the Moldovan economy and supporting them is vital to secure sustained economic growth. Investments in equipment upgrades and energy efficiency are critical for their competitiveness and help minimise the negative impacts of war in the neighbouring Ukraine and energy crisis,” Mark Bowman, EBRD Vice-President, said.
Some thirty SME-focused programmes in Moldova are currently benefitting from support under the EU4Buiness initiative, Adam Grodzicki, Deputy Head of Cooperation in the EU Delegation to the Republic of Moldova, was quoted as saying.
Moldova was granted EU candidate status in June and this round of financing will facilitate the EU Economic and Investment Plan target to support 50,000 MSMEs in the country.
ProCredit Bank Moldova is a development-oriented commercial bank that is fully owned by Germany’s ProCredit Holding and is part of the international ProCredit Group. In February 2021, the EBRD announced that ProCredit Bank had been the recipient of another 15 million euro loan to support MSMEs.
Having invested over 2 billion euro in 159 projects in Moldova, the EBRD is the country’s biggest institutional investor.