The European Bank for Reconstruction and Development (EBRD) is bolstering its aid for micro, small, and medium-sized enterprises (MSMEs) in Moldova with a fresh €5 million loan awarded to Victoriabank. The loan agreement was inked by EBRD President Odile Renaud-Basso and Victoriabank's CEO, Levon Khanikyan, under the watchful eyes of EU Ambassador to Moldova, Jānis Mažeiks. The new funding aims to empower Moldovan companies to increase their competitiveness both domestically and on the international stage.

The funding is part of the EU4Business-EBRD credit line, a collaboration where EBRD delivers finance to MSMEs via associated financial entities. Simultaneously, the EU enhances this proposition with incentive grants via the EU4Business initiative.

The loan beneficiaries will have the means to invest in state-of-the-art equipment and manufacturing advancements, improve product excellence, health and safety norms, and notably, promote green practices and resource efficiency, as a minimum of 70% of the loan is dedicated to funding eco-friendly technologies.

The loan is enriched by EU grant funds, which offer incentive payments to successful investment ventures of Victoriabank's borrowers. Additionally, the loan package includes project consultant's guidance for the implementation of projects for both Victoriabank and its clients.

Moldova, granted EU candidate status in June 2022, will see this additional financing aid its path towards meeting the EU Economic and Investment Plan's goals to support Moldova's MSMEs.

Victoriabank, the third largest commercial bank in Moldova, is predominantly owned by VB Investment Holding B.V. based in the Netherlands. This holding entity is in turn owned by Banca Transilvania, Romania, and the EBRD.

The EBRD, Moldova's leading institutional investor, has infused over €2 billion into 164 projects across Moldova's financial, agribusiness, energy, infrastructure, and manufacturing sectors since it began operations in the country.

Source of this article; www.ebrd.com