For lending to micro, small and medium-sized enterprises in Moldova, the EBRD will provide a loan of 10 million euros to ProCredit Bank
As noted in the materials of the European Bank for Reconstruction and Development, the loan is planned under the EU Eastern Partnership SME Competitiveness Program for on-lending to eligible micro, small and medium-sized enterprises (MSMEs). In addition to long-term financing, eligible sub-borrowers will receive EU-funded technical assistance and grant support in the form of investment incentives upon completion of their investment projects. The EBRD emphasizes that the Eastern Partnership SME Competitiveness Program is a continuation of the existing Deep and Comprehensive Free Trade Area (DCFTA) Blended Financing Program (DCFTA) with the EU, developed for Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine to support the modernization of micro, small and medium-sized enterprises according to the standards of the European Union. The proposed project will allow ProCredit Bank to provide loans for investment purposes to local MSMEs, financing technology and equipment upgrades necessary to meet EU standards in terms of product quality, health and safety measures and environmental protection, and thus help enterprises become more environmentally friendly and more competitive. According to the EBRD, ProCredit Bank will continue to expand its MSME portfolio, with a particular focus on financing investments that lead to compliance with EU directives and enhance the competitiveness of Moldovan MSMEs. ProCredit Bank is expected to maintain the proper quality of its loan portfolio. The EBRD notes that ProCredit Bank is the 5th largest bank in Moldova (out of 11) with total assets of 300 million euros and a market share of 4.7% at the end of 2022. It has a stable financial position, a proven track record and a viable business - a model focused on serving small and medium-sized businesses. ProCredit Bank is an international bank with 100% foreign capital, with a sole shareholder from Germany: ProCredit Holding. The bank is part of the international financial group ProCredit, which operates in Eastern Europe, Latin America and Germany. //22.03.2023 — InfoMarket.
