The European Bank for Reconstruction and Development (EBRD) announced yesterday the extension of an unfunded risk-sharing facility to leading Moldovan bank, maib, to unlock €40 million of new finance for Moldova’s businesses.
Maib and OTP Bank, which earlier signed a similar €30 million agreement, will be the pilots for the instrument in Moldova.
The risk-share guarantee covers up to 50 per cent of maib’s credit risk on newly originated financing worth €40 million to micro, small and medium businesses (MSMEs). The facility’s risk-sharing structure enhances partner banks’ capacity to provide access to finance to MSMEs in Moldova by unlocking the ability of these financial institutions to channel excess liquidity into new lending using their own funds.
“The launch of portfolio risk sharing facility in Moldova builds on EBRD success in Ukraine, Albania and Bosnia and Herzegovina with similar portfolio guarantee instruments,” says a press release by the EBRD. “MSMEs are critical for sustainable growth of the Moldovan economy, accounting for 98 per cent of all business in Moldova and employing 60 per cent of the country’s workers.”
