BSTDB INCREASES FINANCING TO SME SECTOR IN MOLDOVA
Press Release | 22-Jun-2006
The Black Sea Trade and Development Bank extended a USD 3 million unsecured Micro and SME loan facility to Procredit Bank Moldova.The facility, which carries a tenor of two years, intends to finance sub-loans offered by Procredit Moldova to micro, small and medium-sized enterprises in the country.
The facility will be used to provide short to medium-term financing of projects or investment programs to support industrial, agricultural or service-related enterprises, including their start-up working capital requirements and export financing.
The operation strengthens BSTDB’s efforts to support the SME sector in Moldova, following earlier Euro 2.3 million Guarantee Facility extended by BSTDB to Procredit Moldova. The SME Loan Facility will complement BSTDB’s Euro 3 million Trade Finance program offered by BSTDB in Moldova through Mobiasbanca.
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Procredit Moldova (former MEC Moldova) forms part of a global Procredit Group of 19 banks set up by EBRD, IFC and other private and public sector investors to provide financing to micro and SME customers in developing and transition countries. Procredit Moldova has a fast growing quality loan portfolio reaching USD 17 million as of October 2005. The institution gives priority to the provision of finance to micro entrepreneurs and agricultural operations in the country. It is disbursing some 1,000 loans per month all over Moldova, with over a half of the outstanding loan portfolio accounting for loans of less than USD 1,000.
The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters is in Thessaloniki, Greece. With an authorized capital of SDR 1 billion (approx. USD 1,45 billion), the Bank supports economic development and regional cooperation by providing financing, guarantees, and equity for projects in the public and private sectors in its member countries. BSTDB is rated Long Term Baa2 and Short Term P2 by Moody’s.