EBRD WELCOMES PROGRESS IN MOLDOVAN BANKING SECTOR – HENRY RUSSELL

Henry Russell, European Bank for Reconstruction and Development (EBRD) Director for Moldova, Belarus, Ukraine and the Western Balkans in the Financial Institutions Group applauded the progress achieved by Moldovan banking sector.

On Wednesday, he signed agreements on providing 5 million euros each to the Moldova Agroindbank (MAIB) and the Victoriabank within the EU4Business-EBRD program.

The banker welcomed the EBRD’s partner in Moldova – the EU delegation, headed by its head Ambassador Peter Michalko, saying that its actions helped Moldova achieve radical changes in the country’s banking sector.

According to Russell, the providing of credit lines to the MAIB and the Victoriabank, designed for Moldova’s private sector – small and medium enterprises (SMEs), means that the EU, the EBRD and Moldova and its banks achieved an important goal – returning the banks in their normal mainstream of development.

The banker said that the coming of foreign investors in two systemic banks of Moldova – the MAIB and the Victoriabank, saying that with their arrival the corporate bank management improved.

“The transparency of these banks’ shareholders, high standards of corporate administration allowed the EBRD to resume partnership with Moldovan banks, which is important for the real sector of economy, as the SMEs will get access to long-term business financing”, Russell said, adding that currently there are already 5 banks in Moldova which are EBRD partners within the EU4Business-EBRD.

Ambassador Peter Michalko, Head of the European Union Delegation to Moldova congratulated Moldovan citizens, the country bank, as well as numerous clients of the two banks on the signing of important documents with the EBRD, which is resuming financing of Moldovan systemic banks.

“Investments are an important and necessary factor for economy development, as they help raising production volumes and exports to the huge and attractive market of the European Union with its more than 500 million consumers”, the diplomat said.

He said that the EU is purposefully financing small and medium enterprises, whose sustainable development allows opening new jobs, raising the population living standards, increasing the volumes of exports.

According to Michalko, the EU strategic partnership with Moldova consists of supporting the process of necessary reforms in the country, whose implementation aims at raising the people’s prosperity, a fuller satisfaction of Moldovan citizens’ needs.

Infotag’s dossier: The conditions of the credits provided by the EBRD to MAIB and Victoriabank imply a grant component, whose size may reach 15%. Credits may be provided for a period of up to 4 years or more, which will depend on each project in part. The interest rate on credits from the EBRD line will be at the Moldovan market level.