Since Moldova became a member in 1995, IFC has played a substantive role, committing $77 million of its own funds and arranging $25 million in syndications for supporting power, telecommunications, agribusiness, small and medium enterprises (SME), and the financial sectors.
In 2006 IFC committed $5 million in Mobiasbanca to provide medium-term loans to SMEs and to the retail sector. In FY04, IFC committed a total of $10.5 million to three banks, including a $4 million credit line to Moldinconbank and a $1.5 million credit line to Fincombank, two of the few Moldovan financial institutions oriented towards small businesses. IFC also provided the much needed long-term financial resources to SMEs through financial intermediaries, while supporting growth and strengthening of local banks. In addition, IFC provided $5 million in financing to Victoriabank, one of Moldova’s leading commercial banks, for on-lending to Moldovan corporations, SMEs, and individuals.
Going forward, IFC will maintain its support to developing private enterprises, especially by providing them with long term funding through local banks, and through assistance with attracting foreign strategic investors in the country. IFC will continue to help local banks transform into sustainable, competitive financial institutions and build their SME financing capacity.
IFC will also pursue opportunities to support infrastructure development, which is vital for private sector growth and poverty alleviation in Moldova. IFC has already supported a large-scale power sector privatization, one the largest foreign direct investments in Moldova, by providing $25 million in loans to UF Moldova Companies (RE Chisinau, RED Centru & RED Sud). More on investments in Moldova.
Advisory Services
Advisory services to growing businesses in Moldova are vital to laying the foundation for a successful private sector. Since 1997, IFC implemented projects in the banking, textiles, food processing and agriculture sectors. More on Advisory Services in Moldova.
