MICROCAPITAL BRIEF: 3k Moldovan Remittance Recipients Save $7m After European Bank for Reconstruction and Development (EBRD) Financial Education Program

The UK-based European Bank for Reconstruction and Development, a multilateral institution that finances development projects, has initiated a financial education project in Moldova that is aimed at providing recipients of remittances with improved financial skills to manage the money they receive as well as to encourage them to open bank accounts [1]. Since its start in October 2012, the project has provided training to approximately 20,000 people out of which 3,000 have opened bank accounts and deposited a total of approximately USD 7.5 million. In addition to improving the financial inclusion of the participants, deposits to these bank accounts are expected to help the country’s economy by increasing the liquidity of banks, thereby allowing them to boost lending. The project is being implemented by advisors at four Moldovan banks: Moldova-Agroindbank, Mobiasbanca – Groupe Société Générale, Banca Sociala and FinComBank.

As of 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries.

By Nisha Koul, Research Associate

About European Bank for Reconstruction and Development: The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is owned by 61 countries as well as the European Investment Bank and the European Union as of 2012. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2012, EBRD invested EUR 8.7 billion (USD 11.4 billion) in 388 projects across 34 countries.

Sources and Additional Resources:

[1] EBRD Press Release, “EBRD Facilitates Access to Financial Services for Moldovans,” http://www.ebrd.com/pages/news/press/2013/131008.shtml

MicroCapital Story, September 19, 2013, “European Fund for Southeast Europe (EFSE) Loans $1.3m to Microfinance Institution Microinvest of Moldova,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-8m-to-microfinance-institutions-microinvest-of-moldova-inecobank-of-armenia/

MicroCapital Story, June 4, 2013, “European Bank for Reconstruction and Development (EBRD) Loans $2.6m to Mobiasbanca – Groupe Société Générale of Moldova for Residential Energy Efficiency,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-loans-2-6m-to-mobiasbanca-groupe-societe-generale-of-moldova-for-residential-energy-efficiency/

MicroCapital Universe Profile, European Bank for Reconstruction and Development, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

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