MOLDOVA SME RESILIENCE FACILITY (LE)

Promoter – Financial Intermediary

ACCEPTABLE BANK(S)

Location

• Moldova

Description

The project will provide long-term finance for small and medium-sized enterprises (SMEs) and midcaps.

Additionality and Impact

The Moldova SME Resilience Facility is a lending envelope that aims to finance the activities of micro small and medium enterprises (MSMEs) and Mid-Caps in Moldova, with the goal of contributing to economic resilience, capital investment, employment generation, and alleviating the consequences of the war in neighbouring Ukraine. MSMEs account by far for most of the firms in the country, but their value addition and employment capacity are constrained, among other factors, by limited access to financial resources. In fact, the provision of adequate financing to MSMEs and Mid-Caps is hindered by market failures, namely externalities and information asymmetries. To address these shortfalls, the proposed operation will enhance access to finance for MSMEs and Mid-Caps, in that it will enable the selected financial intermediaries to make funding available at attractive terms and conditions, such as long tenors, flexible disbursements and local currency, which are scarce in the market. The financial intermediaries will also benefit from the signalling effect of partnering with the EIB, which would help them to attract interest by other DFIs and further diversify the sources of funding.

The operation is consistent with EU external policy objectives (in particular the overarching priority to foster jobs and sustainable and inclusive growth), country development objectives and will contribute to a number of Sustainable Development Goals (SDGs), most notably SDG8 (Decent Work and Economic Growth) and SDG10 (Reduced Inequalities). 

Objectives

The aim is to enhance access to finance and financial inclusion, key factors to reinforce Moldova's economic resilience.

Sector(s)

• Credit lines - Credit lines

Proposed EIB finance (Approximate amount)

EUR 100 million

Total cost (Approximate amount)

not applicable

Environmental aspects

The EIB will require the intermediary institutions to take all the requisite measures to ensure that the procedures carried out by the final beneficiaries for the financed sub-projects will comply with national legislation and the ElB's Environmental and Social Standards, as well as international treaties and conventions signed and ratified by or otherwise applicable and binding in the country.

Procurement

The intermediary institutions will be required to take all requisite measures to ensure that any procurement procedures carried out by final beneficiaries for the financed sub-projects are in accordance with the EIB's Guide to Procurement and the applicable EU public procurement rules.

Status

Approved - 15/11/2023