Financed ProjectsProcredit Bank Moldova SME

Identification Code:

OP/05/0533

Total Operation Cost:

0

Maturity:

24 months

Operation Status:

Description and Purpose of the Operation:

ProCredit Moldova was established by several IFIs to provide financial services to micro and small businesses in Moldova. BSTDB was giving a priority to delivering SME finance through both commercial banks and non-banking financial institutions. The main purpose was to provide financing sub-loans to eligible micro, small and medium sized companies in Moldova.

Countries of Operation:

Moldova (100,00 %)

Financial Product:

SME's

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

ProCredit Moldova (previously the Micro-Enterprise Credit din Moldova) was established by several IFIs to provide financial services to micro and small businesses in Moldova. In 2003, according to the decision of shareholders, microfinance banks in different coutnir4es were united into one banking holding under ProCredit Holding AG. The ProCredit group consists of 19 banks operating in transition economies in developing countries. Its core business is the provision of formal credit to micro and small enterprises. The group's business model combines a development policy orientation with a commercial approach.

Co-Financiers/Participants:

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

Due to the Bank's well established market presence and strong support from its shareholders, the Facility represented and excellent mechanism for BSTDB to extend medium term funding to numerous small and medium sized enterprises in Georgia. Moreover, BSTDB has achieved the institutional development of PCM, resulting in further business growth, improved liquidity and client service. Moreover, medium term funding of capital expenditures of Georgia’s SMEs has been achieved, and finally there was job creation, income generation, improved company infrastructure and increased trade turnover.

Environmental Classification and Impact (summary):

PCM Bank is a credible entity in dealing with EH&S issues of its sub- loans. Its well-established environmental policy is supported by a functioning environmental procedure, and is fully integrated in the overall portfolio management.

Operation Leader:

Financial Institutions I

E-mail:

fi1@bstdb.org