The European Investment Bank (EIB) today announced its first credit line to Mobiasbanca, Groupe Société Générale SA, one of the leading commercial banks in Moldova. The credit line is for EUR 20 million intended to support primarily projects of small and medium sized companies, including a tranche for small and medium scale energy and environment projects promoted by mid-sized corporates and public entities.
This operation lies within the SME Eastern Partnership Initiative launched at the Prague Summit in May 2009, and the framework of the joint IFI Action Plan in support of the banking systems and lending to the real economy.
The current loan is the first EIB operation of this kind provided in the Eastern Partner Countries. This project is expected to contribute to Moldova’s development objectives, in that it aims at predominantly helping small and medium size enterprises to mitigate the effects of the current credit crisis and improving their access to medium and long term finance at competitive rates. In addition, it also includes an up to 30% portion for mid-sized corporates and municipalities involved in energy efficiency and environmental initiatives. For this purpose, the EIB cooperates with a well established financing institution in Moldova, such as Mobiasbanca, by leveraging on its deep knowledge of the market and its ability to respond to its crucial financing needs.
Following the signature yesterday of the two loans with the State of Moldova for the rehabilitation of key national roads, and for the upgrading of its wine-making industry, this project is the sixth investment made by the EIB since it commenced operations in the country in late 2006. Including the current loan, the Bank’s total investments in Moldova now stand at EUR 235 million, showing EIB’s strong commitment to the support of the sustainable economic development of the country in the context of the European Union’s initiatives with its Eastern Partners.
Background:
The mission of the EIB, the European Union’s bank which is owned by the 27 EU Member States, is to contribute to the integration, balanced development and economic and social cohesion of the EU Member States by financing sound investment. In the Eastern Partner countries, EIB supports the EU Neighbourhood Policy by financing projects of significant interest to the EU. EIB started its operations in Moldova in November 2006.
Under the current mandate, the EIB can lend up to EUR 3.7 billion to projects in Eastern Europe, Southern Caucasus and Russia during the 2007–2013 period. In this context, the EIB is prepared to consider support to sound projects in the areas of transport, energy, telecommunications and environmental infrastructure. In addition, in Eastern Partnership countries, EIB can support SME’s through lending via banks.
To complement the mandate, EIB has set up the Eastern Partners Facility (EPF) at its own risk for an amount of EUR 1.5 billion, with EUR 500 million ceiling for projects in Russia. This facility enables the Bank to support investment grade projects, notably EU Foreign Direct Investments (FDI) in the region.