The European Bank for Reconstruction and Development (EBRD), an international financial institution headquartered in England, recently launched a EUR 35 million (USD 44.7 million) program called the Moldovan Residential Energy Efficiency Financing Facility (MoREEFF) to assist Moldovan households in reducing household energy usage and costs. Funds will be made available to local banks, such as Banca Comerciala Romana (BCR) Chisinau, a subsidiary of BCR Romania, that will receive the first credit line of EUR 3 million (USD 3.8 million). The local banks will lend the money to individuals, groups of residents and energy service companies to invest in thermal insulation and the installation of energy efficient appliances such as heat pumps and boilers.
EBRD received a grant of EUR 2.3 million (USD 2.9 million) for MoREEFF from the Swedish International Development Corporation (SIDA), an organization that aims to assist people living in poverty to improve their living conditions, and a grant of EUR 5 million (USD 6.4 million) from the European Union (EU) Neighbourhood Investment Facility (NIF), a financial mechanism that mobilizes funding for infrastructure.
EBRD is employing consultants to increase awareness of the program and to provide households with technical information and advice on energy savings investments.
In 2011, EBRD invested in 380 new projects and held total assets of EUR 47 billion (USD 59.8 billion). BCR Romania held total assets of RON 70.9 billion (USD 20.3 billion) as of 2011.
By Charlotte Newman, Research Associate
About European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development (EBRD) is a development finance institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and more recently in Southern and Eastern Mediterranean region. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2011, EBRD invested in 380 new projects and held total assets of EUR 47 billion (USD 59.8 billion).
Sources and Additional Resources:
European Bank for Reconstruction and Development: “EUR35 million to Support Residential Energy Efficiency Investments in Moldova,” http://www.ebrd.com/english/pages/news/press/2012/120518c.shtml
MicroCapital.org story, April 20, 2012, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) to Loan $15m to Microfinance Institution AccessBank of Azerbaijan for Micro-, Small and Medium-Sized Enterprises (MSMEs),” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-to-loan-15m-to-microfinance-institution-accessbank-of-azerbaijan-for-micro-small-and-medium-sized-enterprises-msmes/
MicroCapital.org story, October 8, 2011, “MICROCAPITAL BRIEF: EU Pledges Additional EUR5m to EBRD’s Small Businesses Programmes in Eastern Europe,” https://www.microcapital.org/microcapital-brief-eu-pledges-additional-e5m-to-ebrds-small-business-programmes-in-eastern-europe/
MicroCapital Universe Profile: European Bank for Reconstruction and Development
https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
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