Events

On 14 September, ODIMM organised the workshop “Opportunities and difficulties in financing Small and Medium-sized Enterprises”.

The Work-shop aimed at promoting efficient financing mechanisms for SMEs, assessing the impact of the Credit Guarantee Funds, identifying opportunities and difficulties in financing SMEs.

The event was attended by Mr Valeriu Lazăr, Deputy Prime MinisterMinister of Economy, H.E. Mr Dirk SchuebelEU Ambassador to the Republic of Moldova, Ulla TornroosEU international expert in the field of the work of the Credit Guarantee Funds.

at the same time, representatives of the National Bank of Moldova, the National Financial Market Commission, banking and non-banking financial institutions, the Ministry of Economy, the Ministry of Finance, international donor organisations, non-governmental associations and the domestic business environment participated in the discussions.

2 entrepreneurs were also invited to share their experience in obtaining a loan, the strengths and weaknesses of bank-entrepreneur relations, and the needs of small entrepreneurs. As a result, discussions have highlighted the fact that, on the one hand, entrepreneurs fail to exploit internal resources efficiently and, on the other hand, banking institutions are reluctant to finance SMEs.

Mr Lazar stressed that the Republic of Moldova needed a more precise focus on the financing system, in particular for the support of the newly created companies, which were struggling with the pledge issue. At the moment, banking financial institutions are not making effective use of the credit guarantee instrument, which is highly appreciated in international practice. The Deputy Prime Minister also noted that “the FGC needs to be capitalised, thereby increasing the number of entrepreneurs seeking credit from the bank.”

His/Her Excellency Mr Dirk Schuebel noted that attracting more investment to develop the SME sector would lead to a considerable improvement in the business environment and growth of the national economy. Partnerships with EU Member States and other foreign institutions, sharing European investment policies and strategies, will ensure the implementation of innovative projects and boost investment in the Moldovan SME sector.

Note: As the first credit guarantee scheme in the Republic of Moldova, the establishment of the CRF was motivated by the importance of the SME sector in the national economy as a whole and its potential to participate in the creation of gross domestic product, the increase in exports and the creation of new jobs.

The FGC is an effective lever to improve access to credit resources for small entrepreneurs with sufficient capacity to repay a loan, but without a pledge acceptable to the bank, they cannot obtain it.