The European Bank for Reconstruction and Development (EBRD), an international financial institution, and the European Fund for Southeast Europe (EFSE), a microfinance investment fund, recently loaned USD 10 million to ProCredit Bank Moldova, a development-oriented bank.
Each institution is financing USD 5 million of the loan, which is intended to allow ProCredit Bank Moldova, a member of Germany’s ProCredit Holding, to expand its lending programs to micro- and small enterprises. To mitigate risks associated with borrowing foreign currencies, USD 5 million of the loan is offered in Moldovan lei (MDL 64 million) [1].
Founded in 1999, ProCredit Bank Moldova has USD 32 million in total assets as of December 31, 2008 [2]. It provides financial services to micro-, small and medium-sized enterprises in Moldova. It is operated by ProCredit Holding, a group of 22 banks in Africa, Latin America, and Eastern Europe. As of September 30, 2009, ProCredit Holding’s total assets are worth EUR 4.7 billion (the equivalent of USD 6.5 billion) [3].
About the European Bank for Reconstruction and Development:
The European Bank for Reconstruction and Development (EBRD) is, according to its website, “the first international financial institution of the post Cold War period.” Headquartered in London, the bank began operations in 1991 upon the agreement of 40 countries and is now “owned by 61 countries and two intergovernmental institutions.” It aims to “finance operations that are both commercially viable and assist development” in 29 countries in Central Europe and Central Asia. It does this by providing loans, debt securities, equity investments, guarantees, and technical assistance to micro and small businesses as well as commercial banks and non-bank microfinance institutions (MFIs).
About the European Fund for Southeast Europe:
The European Fund for Southeast Europe (EFSE) is a microfinance fund with the goal of fostering economic development in Southeast Europe. It was founded in December 2005 and has facilitated approximately 200,000 loans to micro- and small enterprises (MSEs) and private households. EFSE also runs a Development Facility that provides technical consulting and training measures to strengthen partner finance institutions. According to the Microfinance Information Exchange (MIX), the fund’s assets total over USD 716 million.
About ProCredit Bank Moldova:
Founded in 1999, ProCredit Bank Moldova provides financial services to micro-, small and medium-sized enterprises in Moldova. It is a member of ProCredit Holding, an international organization based in Germany consisting of 22 banks in Eastern Europe, Africa, and Latin America. ProCredit Bank Moldova has USD 32 million worth of assets as of December 31, 2008, and ProCredit Holding has assets worth EUR 4.7 billion (the equivalent of USD 6.5 billion) as of September 30, 2009.
By Eric McKay, Research Assistant
Bibliography:
[1] European Fund for Southeast Europe Press Release, “EBRD and EFSE support micro and small businesses in Moldova”, http://www.efse.lu/news-events/press-releases/archive/press-releases-2010-02-09.html
[2] PCB Moldova Annual Report. December 31, 2008, http://www.procreditbank.md/data/files/reports_anual/AnnualReportPCBMoldova2008.pdf
[3] ProCredit Holding Consolidated Interim Financial Statements. September 30, 2009, http://www.procredit-holding.com/upload/pdf/Statistics/pch_3_2009GROUP_0401a.pdf
Additional Links:
Microcapital Universe: European Fund for Southeast Europe: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Fund+for+Southeast+Europe+%28EFSE%29
MicroCapital Universe: European Bank for Reconstruction and Development: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
MicroCapital Universe: ProCredit Bank Moldova: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ProCredit+Bank+Moldova
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