Mobiasbanca, a private bank in Moldova, will benefit from an innovative EBRD risk-sharing facility that will help meet local entrepreneurs “growing demands for longer-term finance”.



The US$6mn facility is being provided under the bank’s Early Transition Countries (ETC) initiative, which helps boost entrepreneurship and growth in the poorer countries of the CIS.


Besides enabling Mobiasbanca to on-lend longer-term finance to successful medium-sized businesses, a novel element of the facility is the ability of the EBRD to directly co-finance projects with the bank, sharing the ultimate client risk. As a result, Mobiasbanca will be able to propose larger sub-loans to its clients than it would on a standalone basis: up to US$2mn, with a maximum maturity of five years.


In countries like Moldova, credit is constrained by the size of the banking system, single-borrower exposure limits and lack of medium- and long-term funds. Francis Delaey, head of the EBRD’s Chisinau resident office, says the new facility is designed to overcome these obstacles and increase support to the private sector.


“By working with the best local banks, the EBRD plays a crucial role by allowing them to target clients whose needs are outgrowing the capacity of the local banking system. Entrepreneurs need finance to acquire, expand or modernise, as well as address working capital needs, including export and pre-export financing” Delaey adds.


The EBRD has a long-standing existing relationship with Mobiasbanca, the sixth largest private bank in Moldova, which is majority-owned by foreign investors and specialises in supporting small and medium-sized enterprises. The two institutions have been cooperating since 1997 on micro-lending, trade facilitation and SME financing.