Polish Bank Gospodarstwa Krajowego will provide Moldova with a loan of 5 million euros to support the development of small and medium-sized enterprises.
This is provided for by a draft corresponding loan agreement between the Government of Moldova and Bank Gospodarstwa Krajowego, the start of negotiations on which was approved by the Cabinet, appointing a group of negotiators headed by the Minister of Economic Development and Digitalization Dumitru Alaiba. The agreement is supported by a grant from the European Commission to subsidize loan interest and provide technical assistance. The ultimate goal of the agreement is for the Moldovan authorities to attract long-term financial resources to the Organization for Development of Entrepreneurship (ODA) to finance investment projects of enterprises at low prices. The financial assistance will be used through the Fund for Enterprise and Economic Growth (FACEM) to facilitate access of small and medium-sized enterprises to concessional and long-term financing at below market interest rates. The draft agreement stipulates that Bank Gospodarstwa Krajowego (BGK) will provide Moldova with a loan of 5 million euros for a period of 7 years, including a 12-month grace period on the loan. The fixed interest rate will be 0.5% per annum; the remaining interest (up to the agreed rate) will be paid by the European Commission from the grant approved to BGK for these purposes. 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. FACEM will finance investment business projects through participating financial institutions. The loan will be repaid quarterly in equal installments in the amount of 208,333 euros. The agreement does not involve expenditures from the state budget. Credit risk will be borne by participating financial institutions. // 13.09.2023 — InfoMarket
