EBRD and EU increase support for small businesses in Moldova

EBRD and EU increase support for small businesses in Moldova

The European Bank for Reconstruction and Development (EBRD) is providing a €15 million loan to ProCredit Bank to support micro, small and medium-sized enterprises (MSMEs) in Moldova (https://www.ebrd.com/moldova.html). The new financing, supported by European Union

(https://www.ebrd.com/who-we-are/structure-and-management/shareholders/european-union.html) (EU) funds, will help companies to become more competitive and seize new export opportunities.

The financial package will allow businesses to invest in the modernisation of their equipment and production processes to EU standards in product quality, health and safety measures and environmental preservation. The support comes at a crucial time, with the coronavirus pandemic (https://www.ebrd.com/what-we- do/coronavirus-solidarity) having a severe impact on local businesses and limited access to finance available.

The support is part of the EU4Business-EBRD credit line (https://www.eu4business-ebrdcreditline.com/), for which the EBRD provides finance to MSMEs through partner financial institutions, while the EU makes additional funds available to identify, verify and promote the most suitable equipment as well as incentive payments to MSMEs following the successful completion of upgrades.

Ensuring high product standards allows companies to become more export-oriented and trade their goods widely, while also making them more competitive on the local market. At the same time, consumers across the country benefit from such improvements when purchasing these products.

Angela Sax, EBRD Head of Moldova, said: “It is one of our priorities in the country to support businesses with much-needed finance and in their ambition to export their products. This is more important than ever following the impact of the coronavirus pandemic (https://www.ebrd.com/what-we-do/coronavirus- solidarity) on businesses. Together with our partners we work to provide new opportunities to small businesses and to build a sustainable, green and well-integrated economy in Moldova.”

Peter Michalko, EU Ambassador to Moldova, commented: “With this new EU4Business-EBRD credit line, the European Union aims to improve access to finance for Moldovan MSMEs, as well as to tackle the challenges created by the Covid-19 pandemic. We hope that this assistance for entrepreneurs will bring tangible benefits and improve the life of all Moldovan citizens. Under the Team Europe approach, EU institutions, EU Member States and financial institutions have mobilised considerable resources to provide the necessary healthcare equipment, improve access to finance for SMEs and support the digitalisation and greening of the economy. Team Europe support is also provided for key areas such as local development, good governance, human rights, rule of law and non-discrimination.”

Olga Bulat, ProCredit Bank Management Board Chairperson, says: “Our clients’ trust has motivated ProCredit Bank to diversify, improve and create new competitive services as well as to utilise the latest technologies in customer service, promote environmentally friendly measures and implement European standards in the Moldovan banking market for more than 14 years. The new funding will assist businesses that focus on modern technology and will offer the possibility of benefiting from favourable financial terms and free technical assistance. We are happy to be able to support our customers and maintain and develop our long-term partnerships, especially in these difficult times.”

The EBRD is one of the largest institutional investors in Moldova. To date, it has invested around €1.42 billion in more than 140 projects in the country to support private businesses and key infrastructure and to build a greener and more sustainable economy.

How Growing your Business is just a Piece of Cake

How Growing your Business is just a Piece of Cake

Sweet Portions of Happiness

Panilino was founded in September 2003 a continuation of a family pastry production business that started in the “90s.  The company’s slogan “SWEET PORTIONS OF HAPPINESS” is based on two main principles – the use of traditional Moldovan recipes combined with the use of the highest-quality bakery ingredients.

While staying true to these two cornerstones of the company’s success, the need to mix and stir some new and innovative aspects into this recipe of success became evident, and that is when a sprinkle of help came from EBRD and EU.

A Sprinkle of Help of the EBRD and the EU

With the aim of modernizing the factory through the purchase of high-performance equipment and the optimization of the production process, Panilino took a €347,000.00 EU4Business-EBRD Credit Line loan.

“After extensive research of the various SME credit offers available in Moldova, we decided in favour of the EU4Business-EBRD Credit Line. The conditions of the credit line are very competitive, and the free-of-charge technical support and the grant component of the loan are very truly helpful.” Says Mr. Sergiu Guzun, the director of SRL Panilino. 

What is the EU4Business-EBRD Credit Line?

What is the EU4Business-EBRD Credit Line?  It is a loan and grant programme that was developed jointly by the European Union under the “EU4Business” initiative and European Bank of Reconstruction and Development (EBRD). The main aim of the programme is to support Moldovan SMEs wishing to take advantage of the opportunities provided by the Deep and Comprehensive Free Trade Agreement that was signed between Moldova and the European Union. Loans are disbursed via local partner financial intermediaries and, after successful verification investors receive a 10-15% grant incentive, financed by the EU4Business initiative. Apart from the grant incentive, SMEs interested in upgrading their equipment, can also take advantage of the free-of-charge technical expert advice and consultation provided by an international team of implementation consultants.  

EBRD and EU help Moldova’s PANILINO grow into a leading pastry producer

The results of the investment were immediate and, like always, best evidenced by numbers: the post investment figures showed a 15% increase in the productivity of the factory and a 5% increase in exports, supported by contracts that were signed with distributors from Ireland, France, Italy, Latvia, Austria and Germany. With this the company is a great example of a small local producer that successfully turned into an export hit through diligent focus on continuous quality improvement. 

And the number provide more positive news: the increased demand for Panilino’s sweet and savoury products led to an increase in the workforce from 238 to 257 employees.

“The loan, the free-of-charge technical support and the cash-back grant that we received through the EU4Business-EBRD Credit Line was a game changer for us. We increased the assortment, improved product quality and significantly optimized our costs.  And we don’t plan to stop here. Eventually, we want to have an even more solid foot in international markets and make Panilino an internationally recognized brand.” Says Mr. Sergiu Guzun.

We think, at the rate this company is going about its plans, realizing the set goals will just be a piece of cake for Panilino.

EBRD and EU unlock fresh funding for SMEs in Moldova

EBRD and EU unlock fresh funding for SMEs in Moldova

    • €5 million loan to Mobiasbanca-OTP Group to boost SME growth
    • EU grants complement EBRD loans as part of EU4Business-EBRD credit line
    • On-lending for local companies to upgrade to EU standards

Small and medium-sized enterprises (SMEs) in Moldova are to benefit from greater access to finance as the EBRD and the European Union (EU) unlock fresh funding.

The EBRD is providing an additional €5 million loan to Mobiasbanca-OTP Group for on-lending supported by EU grants under the EU4Business-EBRD credit line. The new loan to Mobiasbanca complements two previous ones of €10 million and €20 million since the launch of the programme back in 2016.

The joint financing programme supports Moldovan companies to boost production locally and trade more successfully on the European market. By investing in better equipment and meeting EU standards, the companies are able to improve the working conditions of their employees, environmental sustainability and offer goods and services of better quality at home and abroad.

To date, the EU4Business-EBRD credit line has provided more than €65 million to five local partner banks for on-lending with over 230 businesses already benefiting from the programme.

Angela Sax, EBRD Head of Moldova, said: “We are delighted to be joining forces with the EU and Mobiasbanca once again and meeting growing demand from local companies. Access to finance is critical for business growth, and it becomes even more important today as we stand ready to help companies weather the economic impact of the global coronavirus pandemic.’’

Peter Michalko, Ambassador of the European Union to Moldova said: “I would like to highlight the EU’s commitment to support the SMEs, as a key element for inclusive economic development, because Moldova’s economic success depends largely on the growth of small and medium-sized enterprises. Difficulties in accessing finance are one of the main obstacles obstructing the growth of SMEs, especially during this difficult time. The EU4Business-EBRD credit line is one of the EU instruments which will contribute to limiting the economic consequences of the Covid-19 outbreak and it includes loans, grants and technical assistance. These additional resources will help the companies from Moldova to increase their competitiveness and to take advantage of the opportunities provided by the Deep and Comprehensive Free Trade Area (DCFTA).”

László Diósi, Chairman of the Executive Committee – CEO, Mobiasbanca-OTP Group commented: “We thank EBRD partners for again trusting Mobiasbanca-OTP Group to offer the €5 million loan to be able to assist local companies during this period. This on-lending is supported by EU grants for clients under DCFTA.  It is timely financial support for our customers; as many companies are now experiencing uncertainty. The available funds will provide a perspective on development plans and confidence in the future.”

The EBRD is the leading institutional investor in Moldova. Since the start of its operations in the country, the Bank has invested over €1.3 billion in 134 projects in Moldova’s financial, agribusiness, energy, infrastructure and manufacturing sectors.

EBRD and EU open new funding opportunities for SMEs via BCR Chisinau

EBRD and EU open new funding opportunities for SMEs via BCR Chisinau

  • New €5 million loan to BCR Chisinau
  • Funds provided under EU4Business-EBRD credit line to boost trade with European Union
  • Investments to finance upgrades of local businesses to EU standards

Angela Sax, EBRD Head in Moldova, said: “Moldovan businesses face strong competition both on the EU market but also domestically, where they need to keep pace with foreign companies. Upgrading standards and improving the quality of products and services will help them become more competitive. The EBRD is delighted to continue making funds available to help Moldovan firms raise the bar at home and abroad.”

Juan Luis Martin Ortigosa, the CEO of BCR Chisinau, commented: “Thanks to this agreement with EBRD, BCR Chisinau will offer its SME customers a tool for implementing new investment projects which will contribute to improving their competitiveness in the local and international markets”.

Small businesses in Moldova will soon be able to improve products and services to European Union (EU) standards, as the EBRD and EU are opening new funding opportunities to upgrade firms’ operations.

The EBRD is providing a €5 million loan to the Chisinau-based subsidiary of Banca Comercială Română, or BCR. The financing is provided within the Error! Hyperlink reference not valid., which the EU is supporting with grants as part of its EU4Business initiative.

The funds will be available for investments to improve the products of Moldovan companies – both in the production process and for the quality of the end results – so as to strengthen their potential to succeed in the EU market and with EU competitors. Exporters must also meet EU standards in the areas of environmental protection, health and safety, and product quality and safety.

The Association Agreement signed between Moldova and the EU, which entered into force in July 2016, provides Moldovan producers with access to the EU’s single market. To make full use of the opportunities under the Deep and Comprehensive Free Trade Agreement (DCFTA), local producers need to take steps to improve their competitiveness, for instance by upgrading their technology and equipment.

The EBRD is supporting these efforts with its EU4Business-EBRD credit line, which is available in GeorgiaMoldova and Ukraine. Through partner financing institutions such as BCR Chisinau, the credit line helps businesses to become more competitive and upgrade their product and service standards, thereby facilitating trade with the EU market. The EU supports this project as part of its DCFTA Facility for SMEs.

The EBRD is the largest institutional investor in Moldova. Since the start of its operations in the country, the Bank has invested close to €1.3 billion in more than 120 projects in Moldova’s financial, agribusiness, energy, infrastructure and manufacturing sectors.

Participation of the EU4Business – EBRD Credit Line in Moldova Eco Energetics

Alinierea la directivele UE ca la unele beneficii foarte atractive - de exemplu reducerea costurilor de energie, reducerea emisiilor de carbon ... sunteți pregătiți pentru a reduce consumul de energie și pentru comerțul cu Europa?

La data de 16 octombrie 2018 Linia de Creditare EU4Business-BERD a participat la workshop-ul ”Instrumente de finanțare în domeniul eficienței energetice” organizat de Agenția pentru Eficiență Energetică. Evenimentul a avut loc în cadrul Zilelor «Moldova Eco Energetică», ediția a opta, care s-a desfășurat la Chișinău în perioada 15 – 18 octombrie. La workshop au participat experți naționali și internaționali care au prezentat mecanismele de finanțare accesibile în Republica Moldova, pentru inițierea, lansarea și dezvoltarea unei afaceri în sectorul energiei verzi. Printre ei si Managerul de proiect al Linei de Creditare EU4Business-BERD în Moldova Giovanni Vaccari a prezentat un program unic de finanțare pentru companiile din Republica Moldova,  care doresc să implementeze proiecte de eficiență energetică și energie regenerabilă, și în același timp să se alinieze la directivele UE.

Mobiasbanca participates at the exhibitions “Made in Moldova”

Mobiasbanca participates at the exhibitions “Made in Moldova”

Opportunities for business financing are presented by Mobiasbanca advisers at the exhibition “Made in Moldova”, which takes place from 1 of February during 5 days at Moldexpo.

The participants at the exhibition and visitors will find answers about solutions for financing, including grant component, from international funds with advantageous lending rates and
Mobiasbanca representatives will establish contacts and also schedule a meeting at the bank units.

Note that Mobiasbanca offers to entrepreneurs a wide range of lending from international sources of funding, including through European Investment Bank, European Bank for Reconstruction
and Development (EU4Business|EBRD), European Investment Fund, the World Bank, International Fund for Agricultural Development, Credit Line Directorate (the National Program of Youth
Economic Empowerment).

Thus, from foreign funds bank supports large, medium, small and micro enterprises, contributing to accelerating the pace of business development and national economic growth.

First credit line in Moldova to support free trade with EU

First credit line in Moldova to support free trade with EU

EBRD, EU and Mobiasbanca help small businesses to improve products and services

The EBRD, the European Union (EU) and 
Mobiasbanca – Groupe Société Générale are launching today the first credit line in Moldovathat will enable small and medium-sized enterprises (SMEs) to take advantage of opportunities under the Deep and Comprehensive Free Trade Area (DCFTA) with the EU.

This project will support the integration of the Moldovan economy into European markets. The EBRD’s new transition concept argues that a well-functioning market economy should be integratedcompetitiveinclusivewell-governedgreen and resilient. 

The EU4Business-EBRD Credit Line aims to help local SMEs invest in improvements to their product quality and modernisation of their services to meet EU standards.

The EBRD announced the €10 million loan to Mobiasbanca – Groupe Société Générale in late 2016. Under its EU4Business initiative, the EU is supporting the credit line through investment incentives for eligible SMEs and by funding free technical advice from local and international experts.  

Dimitri Gvindadze, Head of the EBRD office in Chisinau, said: “A successful private sector is a cornerstone of the economic development of Moldova and the EBRD is keen to continue its support for businesses with this new credit line. The credit line, and the valuable support from the EU, will help to improve product standards and services so that businesses can seize new market opportunities offered by the DCFTA with the EU. This is to everyone’s benefit: Moldova’s private sector companies, local and European consumers, and the Moldovan population as a whole, all stand to gain from increased regional trade and investment integration, which can foster economic growth and employment.”

EU Ambassador to Moldova Pirkka Tapiola, commented: “Together with our partners from the EBRD we help you implement much needed reforms and capitalise to the maximum on the opportunities for economic success for the Republic of Moldova that DCFTA offers. We are together to ensure that these reforms bring changes to people’s lives, through concrete support provided for business development in the country.”

Elena Guzun, Commercial Director of Corporate Banking at Mobiasbanca, added: “Mobiasbanca’s strategy is to provide SMEs with accessible and advantageous financing products and the expertise to develop modern businesses. For this reason, we develop partnerships with European financial institutions focused on attracting international funds in the most favourable financing conditions for our clients, including grant components and support to strengthen the development capacity and competitiveness of SMEs.  We believe that this effort contributes directly to the development of small and medium-sized businesses, which will help to boost the country’s economic growth.”

Moldova’s Association Agreement with the EU entered into force in 2016 and it fosters the implementation of important reforms. The establishment of the free trade area with the European Union creates new trade and investment opportunities as it offers businesses access to the EU’s single market – the largest in the world.

The EU4Business-EBRD Credit Line is part of a comprehensive package of activities that will help businesses make most of their new market access. The EBRD and the EU also support Moldova’s firms through direct lending, expert advice for SMEs on how to grow their businesses and policy dialogue aimed at improving the investment climate.

The loan to Mobiasbanca – Groupe Société Générale is part of a larger programme which consists of €380 million in EBRD loans and trade guarantees to local banks for on-lending to businesses in Moldova, Georgia and Ukraine, while the EU is making available €19 million for technical assistance, investment incentives and risk-sharing.