EBRD increases unfunded risk-sharing for Moldovan bank maib
The European Bank for Reconstruction and Development (EBRD) has increased the threshold of its unfunded risk-sharing facility to leading Moldovan bank, maib, from €20 million to €35 million, unlocking a total of €70 million of new finance for on-lending to Moldova’s businesses.
Visiting EBRD Managing Director for Ukraine and Moldova Arvid Tuerkner and maib Chief Executive Officer Giorgi Shagidze signed the guarantee increase agreement on 6 October in Chisinau.
The facility allows the EBRD to share maib’s exposures to local business through unfunded risk participation. Its risk-sharing structure enhances partner banks’ capacity to provide access to finance to companies, mainly MSMEs in Moldova, by unlocking the ability of these financial institutions to channel excess liquidity into new lending using their own funds.
MSMEs are critical for sustainable growth of the Moldovan economy, accounting for more than 98 per cent of all business in Moldova and employing 60 per cent of the country’s workers.
Maib, Moldova’s largest bank with a more than 30 per cent market share in the country, is a longstanding EBRD client, partnering since 1995. The EBRD is Moldova’s largest institutional investor. To date it has invested nearly €2.8 billion in 188 projects in the country.
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