The European Bank for Reconstruction and Development (EBRD) has granted a €5mn credit line to Banca Sociala to support Moldova’s small and medium-sized businesses.

Proceeds of the loan will be on-lent to private and independent companies with less than 250 employees, a maximum annual turnover of €7mn, and a balance sheet of €5mn at the most. Sub-loans made under this credit line will not usually exceed €500,000.

The SME sector is fundamental to Moldova’s economy, with over 90% of the country’s businesses falling into this category and employing almost 60% of the active labour force. However, access to medium and long-term sources of finance still remains limited.

This credit line is the EBRD’s third loan to Banca Sociala. The bank is also an active participant in the multilateral’s trade facilitation programme. To-date, the EBRD has signed 29 projects in Moldova worth more than €75mn.