The EBRD will provide ProCreditBank with a loan of 15 million euros for lending to small and medium-sized enterprises in Moldova in order to ensure their modernization and increase competitiveness.
As noted in the message of the European Bank for Reconstruction and Development, the loan was approved in the context of the bank's response to the COVID-19 pandemic. This is a loan of 15 million euros with a maturity of 5 years, including a 2-year grace period for on-lending to eligible micro, small and medium enterprises. The loan will be provided to ProCreditBank in 3 tranches of 5 million euros each. According to the EBRD, the EaP Small and Medium Enterprise Competitiveness Program is a continuation of the DCFTA Blended Finance Program - the existing DCFTA (Deep and Comprehensive Free Trade Zone) blended finance program developed for Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine for supporting the modernization of micro, small and medium-sized enterprises to EU standards applicable under DCFTA in the areas of environmental protection, health and safety, and product quality / safety. EBRD-approved financing for ProCreditBank will allow the bank to provide loans for investment purposes to local small and medium-sized enterprises (SMEs) to modernize technologies and equipment necessary to meet EU standards in terms of product quality, health and safety measures, environmental protection, which will help businesses become greener and more competitive. ProCreditBank will finance DCFTA priority investments leading to compliance with EU directives, contributing to the competitiveness of Moldovan SMEs. According to the EBRD, ProCreditBank is the 6th largest bank in Moldova (out of 11) with total assets of 225 million euros and a market share of 4.5% as of September 2020. It has a stable financial position, a viable business a model focused on serving small and medium-sized businesses through a network of 6 branches. // 04.12.2020 — InfoMarket.
