Financed ProjectsMEC Moldova Guarantee

Identification Code:

OP/00/0080

Total Operation Cost:

0

Maturity:

24 months

Operation Status:

Description and Purpose of the Operation:

The Bank signed Guarantee Facility Agreement with ProCredit SA and Guarantee Agreement with Ministry of Finance in order to guarantee in favor of the Ministry of Finance of Moldova due repayment by Procredit Moldova of funds received by it from the Ministry of Finance under a Channeling Agreement funded by KfW for the purpose of Micro and SME Financing in Moldova. The initial Guarantee Facility Agreement amount was EUR1million for 2 years (BoD approval was for EUR 2,600,000 for 2 years) and in November 2003; the guaranteed amount was increased to 2,300,000 EUR. In November 2004 the guarantee facility extended until 15 December 2005. The guaranteed amount was including principal, interest and additional fees.

Countries of Operation:

Moldova (100,00 %)

Financial Product:

Guarantees

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

Procredit Bank Moldova (former MEC Moldova)

Co-Financiers/Participants:

Guarantors/Sponsors:

Developmental and Regional Cooperation Impact:

This project was an opportunity for BSTDB to collaborate with the Ministry of Finance of Moldova as well as with KfW in a joint effort to support economic development in the country. BSTDB’s participation in this project provided collaboration in supplying increased liquidity and support to small and medium-sized enterprises, a sector of great importance.

Environmental Classification and Impact (summary):

In line with applicable EH&S requirements

Operation Leader:

Financial Institutions I

E-mail:

fi1@bstdb.org