MAIB BECOMES BELARUS GOVERNMENT'S FINANCIAL PARTNER IN SUPPLYING MACHINERY TO MOLDOVA

The Ministries of Economy and Industry of Belarus selected Moldova's largest financial institution - the Moldova Agroindbank (MAIB) as financial partner in supplying of tractors, combines, sidewalk cleaners and elevators to Moldova.

On Thursday, MAIB Chairman Sergiu Cebotari signed a corresponding agreement, which implies that the Belarusian Government issued to the Moldova Agroindbank a special compensation on bank credits for buying various types of Belarusian machinery by economic entities.

For implementing the project, the Belarusian Embassy in Chisinau studied the condition of Moldovan financial institutions, selecting the MAIB as partner. According to the source from the Belarus official delegation, a great importance was given to the bank's financial situation on the Moldovan bank market.

"Besides high reliability, capitalization and good repute, it was very important for us that the bank to closely work with the agricultural sector, thousands of representatives of which are MAIB clients for dozens of years", the Infotag interviewee said.

MAIB Chairman Sergiu Cebotari said to Infotag that the signed agreement implies crediting for importing wide range of machinery from Belarus for a period of 5 years.

"MAIB will be financing 90% of the cost of the machinery, purchased by legal and physical persons. The remaining 10% will be covered by its buyers", the banker said.

Belarus Government compensation will be covering the National Bank of Moldova's base rate to the MAIB, but the compensation should not higher than 6%. Currently, the NBM base rate is 6.5%.

"Judging by the data over the first two months of 2018, the banking system average interest rate on newly-issued credit in national currency accounted for 9.85%. Given the compensation the bank has available from the Belarusian Government, the saving on credit for importing tractors, combines, elevators and other machinery of Belarusian origin accounts for 3.85%", Cebotari said.

At the question about the rate of Belarusian Government's compensation in case the NBM base rate changes, the banker said that it will be connected to the size of the base rate, but cannot be higher.

"In case the Moldovan regulator lowers the base rate, the compensation rate also immediately falls, being established in each credit agreement as of the moment of issuing credit for machinery buying", Sergiu Cebotari said.