The European Bank for Reconstruction and Development (EBRD) and the European Fund for Southeast Europe (EFSE) agreed a five-year $10m loan to ProCredit Bank in Moldova to support micro and small enterprises (MSEs).
ProCredit Bank is the successor of the financial company ProCredit in Moldova, one of the leading institutions in the country providing loans to small businesses. It has a wide geographical coverage, including small towns and villages. In the last ten years ProCredit institutions in Moldova, the financial company and the bank, provided loans to more than 13,000 Moldovan entrepreneurs.
The proceeds of the credit line will be used to finance investments and working capital of local small businesses with medium-term loans.
The loan will support the institution in diversifying its funding base and maintain the provision of credits to small enterprises in the current difficult conditions. In addition, to help ProCredit Bank and its customers mitigate risks associated with lending in foreign currencies, half of the credit line is offered in Moldovan lei equivalent.