On-lending rates for investment credit lines financed in Moldovan lei (MDL) at the expense of external government loans for the development of the real sector were reduced by 3.5 percentage points.
Thehe Ministry of Finance announced this, noting that the decision was adopted jointly with the Supervisory Board of the Foreign Assistance Program Management Office, and it will help mitigate the impact of the recent increase in lending rates and the negative consequences of the Covid-19 pandemic on the activities of companies refinanced through partner financial institutions under credit lines. In order to support and preserve jobs and business activity, the necessary investment costs up to 5 million euros, as well as the working capital required in the production process up to 360 thousand euros, can be financed under the credit lines. The Ministry of Finance notes that on-lending operations were further expanded under the credit line of the project "Emergency Response to COVID-19 and Support for Micro, Small and Medium Enterprises", financed by a state loan provided by the Development Bank of the Council of Europe, under which up to 10 % of the subloan amount is provided to the final beneficiaries at a zero rate, the on-lending component totaling 30 million euros of the project was allocated and fully utilized. The total amount of funds available for on-lending through financial institutions of participating investment credit line partners is the equivalent of $60.3 million from direct funds of external government loans for development and the equivalent of $57.4 million of accumulated working capital funds. // 17.01.2022 – InfoMarket
