Moldova receives the first 10 million euros tranche from the loan provided by the Council of Europe Development Bank (CEB)
Moldova receives the first 10 million euros tranche from the loan provided by the Council of Europe Development Bank (CEB) to support micro, small and medium-sized enterprises under the project "Emergency response to COVID-19" with a total value of 70 million euros. The Ministry of Finance announced this, noting that economic agents can receive these funds through banks that previously signed contracts on re-crediting under the named project. Financing of subprojects from borrowed funds should not exceed 90% of the total amount of the subproject; several subprojects of the beneficiary can be financed, for a total amount of up to 2 million euros, and the amount of an individual subproject is limited to 600 thousand euros. Financing from the CEB loan for working capital is limited to 300 thousand euros per beneficiary. Sub-loans have a maximum maturity of 6 years, including a 12-month grace period. Part of the co-financing - 10%, stipulated by the project, which will be reimbursed, will be re-credited through the banks participating in the project from the resources of the state institution "Office of Foreign Aid Project Management" at a zero rate. It is also possible to retroactively finance the costs incurred by the beneficiaries or the banks participating in the project from their own resources before the date of signing the loan agreement with the bank. The interest rate of re-crediting for the Moldovan banks participating in the project, as far as 90% of the share is concerned, in terms of euro will be fixed at a rate of 0.6% for the entire loan period, and in terms of MDL the interest rate will be floating and will vary based on the base rate of the National Bank of Moldova. Applications for sub-loans from the CEB funds can be submitted to Moldova Agroindbank, Moldindconbank, Comertbank, Victoriabank, Mobiasbanca-OTP Group, ProCredit Bank and FinComBank. As previously reported, the 70 million euros loan from the Council of Europe Development Bank to finance the project "Emergency Response to COVID-19 and Support for Micro, Small and Medium-sized Enterprises" provides for a 30 million euros component for the re-lending of real sector enterprises to be implemented by the Ministry of Finance through the Office of Foreign Aid Program Management and the participating financial institutions. The purpose of the credit line is to support the activities of micro, small and medium-sized enterprises, create and maintain jobs, and facilitate access to concessional financing funds. Loans will be provided both to finance investments and to replenish the working capital needed by economic agents affected by the pandemic. More detailed information on the general conditions for the re-crediting of the credit line funds is presented on the website of the Ministry of Finance - https://mf.gov.md/ro/datoria-sectorului-public/proiectele-directoratului-liniei. // 30.11.2020 - InfoMarket.
