Council of EDB Provides EUR10 mn for Moldovan SME
OREANDA-NEWS. June 05, 2014. The Inter-ministerial committee on strategy planning approved the request by ProCredit Bank for being granted the facility of EUR 10 million for further on-lending to the SME sector in Moldova, the press service of the government reports.
Under the program, small and medium-sized enterprises will be provided with credits on beneficial terms. Funds attracted from the Council of Europe Development Bank will cover up to 50% of the projects costs, the other half to be covered by ProCredit Bank and benefiting companies. The funds are supposed to be provided for 7 years with a 2-year long grace period.
The bank can not request CEDB for opening a credit line without having approval by the Inter-ministerial committee on strategy planning since Moldova is a member of CEDB and any project developed or offered by leaders of the bank should be introduced on behalf and with consent of the government. Nevertheless, the approval does not entail any commitment on the part of Moldova’s Cabinet. By approving such projects, the Government seeks to develop the business environment in Moldova, raise living standards in rural areas and create jobs.
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