The European Bank for Reconstruction and Development (EBRD) has extended an MDL 62.7 million (USD 5 million) local currency credit line to Microinvest of Moldova for on-lending to micro and small enterprises (MSEs). This is EBRD’s first local currency loan in Moldova.
According to an EBRD press release, the loan “will help [Microinvest] diversify its funding base and maintain the provision of credits to micro and small enterprises in the current difficult conditions.” Microinvest will also receive USD 100,000 in grant funds, with the aim of strengthening its risk management.
The EBRD provided its first local currency loan in Hungary in 1994. As at the end of October 2009, it had signed 149 loans denominated in eleven currencies for a total project value equivalent to USD 3.83 billion (EUR 2.6 billion).
By: Stefanie Rubin, Research Assistant
About the European Bank for Reconstruction and Development (EBRD):
The European Bank for Reconstruction and Development (EBRD) is, according to its website, “the first international financial institution of the post Cold War period.” Headquartered in London, the bank began operations in 1991 upon the agreement of 40 countries and is now “owned by 61 countries and two intergovernmental institutions.” It aims to “finance operations that are both commercially viable and assist development” in 29 countries in Central Europe and Central Asia. It does this by providing loans, debt securities, equity investments, guarantees, and technical assistance to micro and small businesses as well as commercial banks and non-bank microfinance institutions (MFIs).
About Microinvest:
Founded in 2003 by Soros Foundation Moldova, Microinvest provides advisory and financial services to micro and small enterprises. Of the microfinance institutions (MFIs) reporting to the MIX Market, the microfinance information clearinghouse, Microinvest is the second largest in Moldova by gross loan portfolio and number of borrowers, with USD 25.8 million and 4,388, respectively, as of 2008.
Additional Resources:
Source Article: EBRD Press Release: “EBRD’s First Local Currency Financing for Micro and Small Businesses in Moldova,” http://www.ebrd.com/new/pressrel/2009/091217b.htm
The MIX Market: Microinvest: http://www.mixmarket.org/mfi/microinvest
MicroCapital Universe: European Bank for Reconstruction and Development (EBRD): https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
Microinvest: http://www.microinvest.md/
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