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EBRD lending 7.5 mln euro to boost competitiveness of Moldova's SMEs

EBRD lending 7.5 mln euro to boost competitiveness of Moldova's SMEs

CHISINAU (Moldova), December 24 (SeeNews) – The European Bank for Reconstruction and Development (EBRD) said it is lending 7.5 million euro ($8.3 million) to Moldova-Agroindbank to provide better access to finance for small and medium-sized enterprises (SMEs) in the country.

“The funds will complement a previous loan from the EBRD of 5 million euro to the bank,” the EBRD the EBRD said in a press release on Monday.

It added that both loans are provided under the EU4Business-EBRD credit line – a joint programme by the EBRD and the EU designed to support investments by local companies aiming to align their products and services with EU standards, improve workplace health and safety and foster sustainable environmental practices.

Borrowers under the programme are eligible to receive up to 15% in EU grants upon the successful completion of the investment together with local and international consultancy.

“More companies will now have the opportunity to step up product quality, improve competitiveness and trade with confidence in the EU market," said Angela Sax, EBRD Head of Moldova.

Since the EU4Business-EBRD credit line was launched in Moldova in 2017, more than 60 million euro in loans have been provided to local partner banks for on-lending with more than 180 businesses from various sectors of the economy benefiting from loans as well as from up to 2 million euro in EU grants in total.

The first loan provided to Moldova-Agroindbank under the EU4Business-EBRD credit line has been fully used, the lender's management board chairman Serghei Cebotari noted.

"I am confident that the 7.5 million euro loan will be in high demand too and will help Moldovan SMEs develop and enhance their competitiveness,” said Cebotari.

Moldova-Agroindbank is the leader of Moldova's banking sector, holding about one-third of the market in terms of loans, deposits, assets and profit, and topping bank performance rankings, the EBRD said.

($ = 0.90212 euro)