EIB Group extends EU-backed guarantees to two banks in Moldova
On 26 September, the European Investment Bank (EIB) and the European Investment Fund (EIF), jointly known as the EIB Group, signed two guarantee agreements with ProCredit Bank S.A. (Moldova) and Victoriabank S.A. to enhance access to finance for small and medium-sized enterprises (SMEs) in Moldova. The guarantees are backed by the EU4Business Guarantee Facility, which is financed from the European Union’s budget.
Thanks to these guarantees, Moldovan partner banks will mobilise more than €77 million in fresh financing for SMEs. This will give nearly 1,000 businesses across the country access to loans on significantly more favourable terms than those normally available.
“Today’s agreements send a clear signal of the EIB Group’s strong commitment to Moldova’s private sector,” said EIB Vice-President Teresa Czerwińska. “SMEs are the backbone of the economy, and these EU-backed guarantees will give hundreds of Moldovan companies easier access to finance, helping them invest, grow, and create new jobs.”
The guarantees reduce financing costs and make borrowing easier by lowering collateral requirements – the assets or property that companies usually have to pledge to secure a loan. By easing this burden, the initiative enables businesses to invest with confidence, expand their activities and create new jobs.
“The new local financing facilitated through the EU4Business Guarantee Facility programme is expected to help Moldovan SMEs to benefit from unprecedented opportunities stemming from the EU accession process of the Republic of Moldova and by access to the Union single market,” said Ambassador of European Union to the Republic of Moldova Iwona Piórko.
Through the agreements with ProCredit Bank S.A. (Moldova) and Victoriabank S.A., this support will reach entrepreneurs across many sectors (such as manufacturing, agriculture, trade and others), strengthening their growth prospects and contributing to Moldova’s overall economic resilience.
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