CHISINAU (Moldova), December 18 (SeeNews) – The European Bank for Reconstruction and Development (EBRD) has lent $5.0 million (3.5 million euro) to Moldovan microfinance institution Microinvest for on-lending to small- and medium-sized enterprises (SMEs), the lender said.
The EBRD loan, to be extended in local currency, Moldovan lei, will help Microinvest diversify its funding base and maintain the provision of credits to micro and small enterprises in the current difficult conditions, EBRD said in a statement.
It added the loan will be used to finance investments and working capital of local micro and small businesses with medium and long-term leu-denominated credits.
"This is the EBRD’s first loan in Moldovan lei. It will reduce the foreign exchange risk for Microinvest’s clients and encourage other commercial lenders to continue to provide financial access to local businesses," the head of EBRD's office in Moldova, Libor Krkoska, said in the statement.
The transaction is supported by $100,000 in grant funds, which will be used to strengthen Microinvest’s risk management.
Microinvest is Moldova’s third largest non-bank microfinance institution. It has financed over 13,000 borrowers with loans worth more than $61 million.
EBRD has invested more than 300 million euro in various sectors of the Moldovan economy so far.