Small and medium-sized enterprises in Moldova will have access to financing for the implementation of energy efficiency projects.
This will be possible thanks to a loan agreement worth 5 million euros, signed on December 19 by representatives of the Polish Bank Gospodarstwa Krajowego (BGK) and the Ministry of Economic Development and Digitalization. The financial aid will go to the Fund for Entrepreneurship and Economic Growth (FACEM) to facilitate SMEs' access to concessional and long-term financing with below-market interest rates. The loan will also be complemented by an EU grant of around 1.6 million euros. "By signing this agreement, we will provide our enterprises, domestic manufacturers with more financial resources through the ODA and commercial banks. The investment will contribute to the competitiveness of SMEs, help them adapt production and equipment to new conditions and requirements, become more energy efficient, reduce emissions, and be able to create new jobs," said Minister of Economic Development and Digitalization Dumitru Alaiba. At the same time, EU Ambassador to Moldova Janis Mazeiks said that the support for the development of entrepreneurship and SMEs is at the core of the EU's comprehensive approach to the development of the private sector in Moldova, as well as a flagship initiative for Moldova within the European Investment Plan for the Eastern Partnership. "Together we are making Moldova's economy more competitive, inclusive and sustainable," Janis Mazeiks said. It is worth mentioning that the Bank Gospodarstwa Krajowego (BGK) loan of 5 million euros is granted for 7 years, including a 12-month grace period. It is planned that the loan will be disbursed in two tranches of 2 million euros (in Q1 2024) and 3 million euros (in Q2 2024). The fixed interest rate will be 0.5% per annum; the remainder of the interest (within the contractual rate) will be paid by the European Commission from the grant approved for BGK for this purpose. The loan will be provided to the Ministry of Finance, which will later make these funds available to ODA/FACEM for on-lending to beneficiaries through participating financial institutions. The agreement does not involve expenditures from the state budget. The credit risk will be borne by the participating financial organizations. // 19.12.2023 - InfoMarket.
