The Government of Poland, through Banca Gospodarstwa Krajowego, and the European Union offer support to Moldovan entrepreneurs in the energy efficiency field
Today, representatives of Banca Gospodarstwa Krajowego (BGK) and the Ministry of Economic Development and Digitalization of the Republic of Moldova signed a loan agreement worth 5 million euros. The loan will be supplemented by a grant offered by the European Union, worth approximately 1.6 million euros. Thus, micro-enterprises, small and medium-sized enterprises from the Republic of Moldova will be able to access funds for projects in the field of energy efficiency.
“We deliver for the economy, for our entrepreneurs, for our citizens. By signing this agreement, we will offer our enterprises, local producers, more financial resources through ODA and commercial banks. The investments will contribute to increasing the competitiveness of SMEs in the Republic of Moldova. We offer an economic boost for the next year in order to facilitate development and adjustment to European norms. Our people deserve a better quality of life here, at home,” said Dumitru Alaiba, Deputy Prime Minister, Minister of Economic Development and Digitalization.
“It is a great pleasure for me that the European Union was able to support this loan and the related technical assistance with approximately 1.6 million euros. Support for the development of entrepreneurship and SMEs is at the heart of the EU’s integrated approach to the development of the private sector in Moldova and is also a flagship initiative for Moldova under the European Investment Plan for the Eastern Partnership. I am particularly glad that BGK has joined the club of European financial institutions operating in Moldova. Together we are making Moldova’s economy more competitive, more inclusive and more sustainable,” said Jānis Mažeiks, the Ambassador of the European Union to the Republic of Moldova.
The Agreement signing ceremony, attended by representatives of the Delegation of the European Union in the Republic of Moldova and the Embassy of the Republic of Poland in the Republic of Moldova, demonstrates the solidarity of the European Union and Poland in activities related to assistance for the development of the national economy.
The BGK loan in the total amount of 5 million euros will be granted to the Republic of Moldova for a period of 7 years. It will support the Fund for Entrepreneurship and Economic Growth of Moldova (FACEM), managed by ODA, in order to grant loans to small and medium-sized enterprises in the country, under advantageous conditions.
“Back in February this year, the Government approved the activity framework of the Fund for entrepreneurship and economic growth – FACEM, and the first product 373 was successfully launched and presents high interest among entrepreneurs. At the end of the year, we are also ready for the second product of FACEM, which comes with the same conditions for entrepreneurs, i.e. fixed interest of only 7% for investment loans. Moreover, the proposed implementation mechanism will allow us to grant banks cheap resources for loans of up to 10 years, which will provide more predictability, stability and confidence to entrepreneurs,” said Dumitru Pîntea, ODA Director.
The support of the European Union consists in supplementing the loan granted by BGK, through a grant, which reduces the interest rate of the loan for the Republic of Moldova and a grant for technical assistance, which provides assistance in completing loan applications or carrying out energy audits. Technical assistance activities will be implemented in collaboration with the Polish Solidarity Fund, one of the main actors in Polish development cooperation.
Through cooperation in the field of development, Poland contributes to supporting partner countries in the implementation of the Sustainable Development Goals of the United Nations. The loan granted by BGK aligns not only with this cooperation, but also with the bank’s mission and activities in the area of sovereign development assistance, which means that the loan was concluded directly by the bank with the government of a third country.
“Bank Gospodarstwa Krajowego, known as the Polish development bank, has both knowledge and experience in supporting the development of micro, small and medium enterprises. Therefore, we believe that the launch of the new BGK development assistance tool for the Republic of Moldova, supported by a grant from the European Commission, will represent an important step towards the energy transformation of the country. Building modern aid tools for developing countries creates opportunities for Polish companies to engage in international markets,” says Paweł Chorąży, Executive Director of the European Funds Division of Bank Gospodarstwa Krajowego. “In addition, taking into consideration the historic decision of the European Council last week to start accession negotiations, the project implemented by BGK can represent an important element of support in the preparation of the Republic of Moldova for the accession to the European Union.” – added Paweł Chorązy.
The involvement of development banks in development assistance allows the combination of public funds from donors and the mobilization of private capital. It is also about building a position on the international stage.
