CHISINAU (Moldova), February 4 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Thursday that it is providing a 15 million euro ($18.1 million) loan to Moldova's ProCredit Bank to support micro, small and medium-sized enterprises (MSMEs).
The financial package will allow businesses to invest in the modernisation of their equipment and production processes to EU standards in product quality, health and safety measures and environmental preservation, the EBRD said in a press release.
"It is one of our priorities in the country to support businesses with much-needed finance and in their ambition to export their products. This is more important than ever following the impact of the coronavirus pandemic on businesses. Together with our partners we work to provide new opportunities to small businesses and to build a sustainable, green and well-integrated economy in Moldova," EBRD head for Moldova Angela Sax said.
The support comes at a crucial time, with the coronavirus pandemic having a severe impact on local businesses and limited access to finance available, the EBRD said.
"The new funding will assist businesses that focus on modern technology and will offer the possibility of benefiting from favourable financial terms and free technical assistance," ProCredit Bank management board chairperson Olga Bulat said.
The support is part of the EU4Business-EBRD credit line, for which the EBRD provides finance to MSMEs through partner financial institutions, while the EU makes additional funds available to identify, verify and promote the most suitable equipment as well as incentive payments to MSMEs following the successful completion of upgrades.
The EBRD is one of the largest institutional investors in Moldova. To date, it has invested around 1.42 billion euro in more than 140 projects in the country to support private businesses and key infrastructure and to build a greener and more sustainable economy.
($= 0.8338 euro)