||A EUR 5 million senior loan, comprising two equal tranches with Tranche A committed and Tranche B uncomitted, to Eximbank under the SME Competitiveness Programme in the Eastern Partnership for on-lending to eligible micro, small and medium enterprises (MSMEs). In addition to long-term financing, eligible sub-borrowers will receive technical assistance funded by the European Union (EU) and investment incentives.
The SME Competitiveness Programme in the Eastern Partnership is a follow-on facility of the existing FI DCFTA Blended Finance Programme (DCFTA), designed for Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine, to support upgrades in MSMEs to EU standards. The proposed project will enable Eximbank to extend investment loans to local MSMEs, financing upgrades of technology and equipment necessary to meet EU standards in terms of product quality, health and safety measures and environmental preservation and thus will help businesses to become greener and more competitive. At least 70 percent of all financed sub-loans are expected to be compliant with EBRD Green Economy Transition (GET) approach.
ETI score: 75
Competitive: Eximbank will expand its MSME portfolio with a focus on financing investments leading to compliance with EU directives, facilitating Moldovan MSMEs increased competitiveness.
Resilient: Eximbank will be expected to maintain adequate loan portfolio quality.