EU and EBRD to support Moldovan businesses
- EBRD, EU provide fresh funds to support MSMEs in Moldova via EXIMBANK
- Borrowers to benefit from EU grants following successful investment
- Boost for firms’ competitiveness and sustainability
The European Bank for Reconstruction and Development (EBRD) is extending a 5 million EUR loan to EXIMBANK to boost the competitiveness of Moldovan micro, small and medium-sized enterprises (MSMEs). The loan agreement was signed on 20 January 2022 by EBRD President Odile Renaud-Basso on her first official visit to Moldova.
The new financing will allow borrowers to invest in more modern equipment and align their processes with European Union (EU) standards. Higher product quality and more efficient production in a safer and healthier working environment will help businesses to operate successfully both locally and in the European market.
At least 70 per cent of the new funds will be used to finance green technologies and a third will be dedicated to improving access to finance for women-led companies.
Borrowers will be eligible for a cashback grant of up to 15 per cent of the loan amount upon successful completion of their respective investments. The financial incentives are funded by the EU under the EU4Business initiative.
The EBRD is a leading institutional investor in Moldova and, to date, has invested more than 1.54 billion EUR in the country through 151 projects. It has also provided advisory services to more than 1,500 Moldovan firms to help them improve performance and grow.