EBRD Press Release

24 November 2006

EBRD: Supporting Sound Banking in Moldova

EBRD extends micro and trade finance to CB Banca Sociala

The EBRD is extending a €3 million loan to CB Banca Sociala, one of the leading banks in Moldova, for on-lending to local micro and small enterprises. In addition, the Bank is also increasing Banca Sociala’s limit under the Trade Finance Programme by $3 million to a total of $4 million. The EBRD’s Trade Finance Programme supports trade to, from and within the Bank’s countries of operations.

The EBRD’s credit line will be used for loans up to $100,000 to micro and small enterprises and comes under the Moldova Microfinance Framework, which was established to meet the growing demand for finance from micro and small enterprises in the country. Loans are being provided to commercial banks for on-lending and are accompanied by an intensive technical assistance programme. Participant banks must have transparent ownership structures and follow best practice in terms of banking business and corporate governance.

Banca Sociala was established in 1991 and today has one of the largest branch networks in Moldova with a strong rural presence, where demand for microfinance loans is particularly strong due to limited access to finance for local entrepreneurs. Banca Sociala is a universal bank and provides a full range of banking products and services. It has demonstrated its commitment to best practice corporate governance standards and transparency.

Banca Sociala started developing its microfinance portfolio in February 2006 with the support of team of consultants mobilized by EBRD under the Moldova Microfinance Framework. To-date the bank has provided more than 120 loans for almost $600,000 to micro and small businesses. The EBRD funding will allow expanding these activities and attracting new clients.

Michael Davey, EBRD Director for Caucasus, Moldova and Belarus, said the loan provides the EBRD with the opportunity to support the expansion of one of the largest and most successful private banks in Moldova into the microfinance sector. The credit line will facilitate local entrepreneurs’ access to finance as well as meeting their demand for longer term financing. The EBRD will thus stimulate both financial intermediation and the development of the financial sector in Moldova.

Vladimir Suetnov, president of Banca Sociala, said the new loan marks an important step in the cooperation with the EBRD. It indicates the confidence an international financial institution is having in our bank. The funds will be made available to micro and small enterprises to support their growth with easier access to finance. At the same time the loan will allow Banca Sociala to attract new clients and consolidate our position in this significant market segment.

To-date the EBRD has signed 48 projects in Moldova worth more than €205 million and mobilized more than €125 million from its partners. The country is part of the EBRD’s Early Transition Countries Initiative which aims to stimulate the economy in the Bank’s lowest-income countries by using a streamlined approach to financing more and smaller projects, mobilizing more investment, and encouraging reform.

Press contact:

Axel Reiserer, Tel: +44 20 7338 7753; E-mail: reiserea@ebrd.com

On-line version available at: http://www.ebrd.com/new/pressrel/2006/162Nov.htm

For more information on Moldova, visit BISNIS online at http://www.bisnis.doc.gov/bisnis/country/moldova.cfm

BISNIS (www.bisnis.doc.gov) is part of the U.S. Commercial Service (www.export.gov)