EBRD extends €5 million loan to Victoriabank in Moldova with the support of incentive grants from the EU.
The European Union and The European Bank for Reconstruction and Development (EBRD) are stepping up support for micro, small and medium-sized enterprises (MSMEs) in Moldova.
A new €5 million EBRD loan for Victoriabank was signed by EBRD President Odile Renaud-Basso and Victoriabank’s CEO, Levon Khanikyan, in the presence of the EU Ambassador to the Republic of Moldova, Jānis Mažeiks. The loan will help Moldovan firms across the country become more competitive locally and internationally.
The support is part of a EU-EBRD joint programme - the EU4Business-EBRD credit line. The EBRD provides finance to MSMEs through partner financial institutions, while the EU complements the offer with incentive grants under the SME Competitiveness Progamme, active within the EU4Business initiative.
The borrowers will be able to invest in modern equipment and production upgrades, enhance product quality, health and safety measures, and, especially, advance environmental practices and resource efficiency since at least 70 percent of the loan is expected to fund green technologies.
EU grant funding wil lprovide grant incentives to successful investment projects of Victoriabank’sborrowers, as well as project consultant’s implementation assistance to Victoriabank and its clients.
Moldova was granted candidate status to join the EU in June 2022. This fresh financing will contribute to achieving the EU Economic and Investment Plan targets and supporting MSMEs in Moldova.
Background
Victoriabank is the third largest commercial bank in Moldova. It is majority owned by VB Investment Holding B.V., the Netherlands, which is in turn owned by Banca Transilvania, Romania, and the EBRD.
The SME Competitiveness Programme (SMEC) is an EU-funded programme within the EU4Business initiatives. The SMEC Programme focuses on incentivising capex investments of highly advanced technologies and processes and encouraging best practice among successful growing businesses in order to ensure that small and medium-sized enterprises (“SMEs”) active in the Eastern Partnership Countries can increase their competitiveness.
