EFSE provides EUR 15 million loan to Moldova Agroindbank

Frankfurt am Main and Chrisinau, June 08, 2009 – One of the world’s largest microfinance investment funds, the European Fund for Southeast Europe (EFSE), and the largest commercial bank in Moldova, BC Moldova Agroindbank S.A. (MAIB or the Bank), Chisinau, announced today that EFSE has extended a EUR 15 million loan to MAIB. The financing will be used for on-lending to local micro and small enterprises (MSEs), thus significantly facilitating their access to finance.

This is the fourth loan that EFSE has granted to MAIB for the purpose of providing MSE and housing improvement loans, and follows refinancing facilities totalling approximately EUR 17 million granted during 2006 and 2007. This makes EFSE the Bank’s largest creditor. Additionally, MAIB benefited from one of EFSE’s biggest technical assistance projects for launching micro lending activities. The project started in October 2007 and lasted until February 2009.

MAIB is the largest commercial bank in Moldova in terms of assets (18.3% market share - As of 31st March, 2009; source: National Bank of Moldova and BC Moldova Agroindbank S.A), equity (17.9%1), loan portfolio (19.3%1) and deposits (18.9% - As of 31st March, 2009; source: National Bank of Moldova and BC Moldova Agroindbank S.A.). It has the second largest branch network in the sector with 74 branches and 24 representative offices covering the whole country.

Ms. Sylvia Wisniwski, Chief Operating Officer at EFSE, said MAIB has been a long-term partner in Moldova for many years. The Bank has demonstrated an active commitment in reaching MSEs, and therefore plays a crucial role in supporting a vibrant and entrepreneurial MSE sector in Moldova. The loan will significantly increase the outreach of EFSE in Moldova, providing refinancing for more than 1,000 loans to MSEs, Ms. Wisniwski said.

Mrs. Natalia Vrabie, President of MAIB, noted that in these difficult  times of global recession, MAIB wishes to offer a real support to its customers, offering them opportunities to access credit and dispose of financial resources in order to finance their business, and consequently the national economy.

This latest loan is a continuation of EFSE’s commitment to support the MSE sector in Moldova. So far, the Fund has extended loans to MAIB, Banca Sociala, FinCom Bank, Mobiasbanca, Microinvest and Rural Finance Corporation. Across its target region in Southeast Europe, EFSE has committed over EUR 600 million to 55 commercial banks, microfinance institutions and non-bank financial institutions to facilitate EUR 835 million in 166,000 loans to MSEs and low-income private households (as of 31st March, 2009). This in turn has contributed to the creation of 245,000 jobs (EFSE Annual Development Impact Study 2007). The average loan amount refinanced by EFSE is less than EUR 5,000, which is evidence of the Fund’s mission to reach out to micro entrepreneurs and low-income households. 

About the European Fund for Southeast Europe (EFSE):
Aimed at fostering economic development and prosperity in Southeast Europe, EFSE offers long-term funding instruments to local financial institutions for on-lending to micro and small enterprises as well as to low-income private households. Established by KfW in December 2005 as a Public-Private Partnership, the Fund exhibits a strong investor base of donors, international finance institutions and private institutional investors, including: European Commission, Federal German Ministry for Economic Development and Cooperation (BMZ), Swiss Agency for Development and Cooperation (SDC), Austrian Development Agency (ADA), Danish International Development Agency (DANIDA), the Government of the Republic of Albania, KfW, IFC International Finance Corporation, EBRD European Bank for Reconstruction and Development, FMO Netherlands Development Bank, EIB European Investment Bank, OeEB Oesterreichische Entwicklungsbank, Sal. Oppenheim, Crédit Coopératif and Deutsche Bank. Besides the investment fund, EFSE has a Development Facility. By giving grants, it funds technical consulting and training measures to institutionally strengthen the partner finance institutions. Fund manager is Oppenheim Asset Management Services, Luxembourg. ConCap Connective Capital, Frankfurt/Main, Germany, is the advisor to the fund management.

About BC Moldova Agroindbank S.A. (MAIB):
MAIB is a universal bank which holds the authorization of the National Bank of Moldova to perform all types of transactions in both local and foreign currencies in the Republic of Moldova and on international markets.

MAIB has held a dominant position in the Moldovan banking scene for over 18 years and through it’s achievements is one of the country’s leading banks.. The unique business pattern aimed at providing specialised and efficient services in the commercial and retail segments, together with advanced information technologies and modern telecommunication systems, competitive, client-oriented products and services, well-trained personnel and a highly-developed distribution network have made MAIB both well-known and the first choice bank for local clients.

The bank holds a dominant position in the banking efficiency rating of banks operating in the Republic of Moldova, which is supported by a number of relevant indicators registered by the bank. The bank’s net profit in 2008 amounted to MDL 286.6 million.

The bank’s financial performance has been acknowledged several times by competent specialised international editions. On numerous occasions, international specialized publications have designated Moldova Agroindbank “The Best Bank in Moldova” (Finance Central Europe, Euromoney, The Global Finance, The World Finance)

The market offers new opportunities and Moldova Agroindbank aims at making use of such opportunities through its competence and high quality, intelligence and transparency, creativity and efficiency in launching new products and services that would yield real added value for the bank’s clients.

For more information, please visit: www.maib.md

Media contacts

EFSE Mr. Samir Djikić, Communications Manager Tel: +49 (0)69 9778 7650-26 E-mail: press@efse.lu

BC Moldova Agroindbank Mrs. Larisa Rudeva, Vicepresident – Financial Director Tel: +373 0222 24 15 88 E-mail: larisa.rudeva@maib.md