Chisinau, 19 December 2023 - Today, representatives of the Bank Gospodarstwa Krajowego (BGK) and the Ministry of Economic Development and Digitization of the Republic of Moldova signed a loan agreement worth 5 million euros. The loan will be supplemented by a grant from the European Union worth about 1.6 million euros. This will enable micro, small and medium-sized enterprises in Moldova to access funds for energy efficiency projects.

"We deliver for the economy, for our entrepreneurs, for our citizens. By signing this agreement, we will provide our enterprises, domestic producers, with more financial resources through ODA and commercial banks. The investments will help increase the competitiveness of SMEs in the Republic of Moldova. We are providing an economic boost for next year to facilitate development and adjustment to European standards. Our people deserve a better quality of life here at home," stressed Dumitru Alaiba, Deputy Prime Minister, Minister of Economic Development and Digitisation.

"It is a great pleasure for me that the European Union was able to support this loan and related technical assistance with about 1.6 million euros. Support for the development of entrepreneurship and MSMEs is at the heart of the EU's integrated approach to private sector development in Moldova and is also a flagship initiative for Moldova under the European Investment Plan for the Eastern Partnership. I am particularly pleased that BGK has joined the club of European financial institutions operating in Moldova. Together we are making Moldova's economy more competitive, inclusive and sustainable", said Jānis Mažeiks, Ambassador of the European Union to Moldova.

The signing ceremony of the Agreement, which was also attended by representatives of the Delegation of the European Union to the Republic of Moldova and the Embassy of the Republic of Poland in Moldova, demonstrates the solidarity of the European Union and Poland in activities related to assistance for the development of the national economy.

The BGK loan totalling EUR 5 million will be granted to the Republic of Moldova for a period of 7 years. It will support the Fund for Entrepreneurship and Economic Growth of Moldova (FACEM), managed by the ODA, to provide loans to small and medium-sized enterprises in the country on favourable terms.

"Back in February this year, the Government approved the framework of the Fund for Entrepreneurship and Economic Growth - FACEM, and the first 373 product has been successfully launched and is enjoying interest among entrepreneurs. Now, at the end of the year, we are ready for the second FACEM product, which comes with the same conditions for entrepreneurs, i.e. fixed interest of only 7% for investment loans. Moreover, the proposed implementation mechanism will allow us to provide banks with cheap resources for loans up to 10 years, which will give more predictability, stability and confidence to entrepreneurs," said Dumitru Pîntea, ODA Director.

The European Union support consists of supplementing the BGK loan through a grant, which reduces the interest rate of the loan for the Republic of Moldova, and a technical assistance grant, which provides assistance in completing loan applications or carrying out energy audits. The technical assistance activities will be implemented in cooperation with the Polish Solidarity Fund, one of the main actors in Polish development cooperation.

Through development cooperation, Poland contributes to supporting partner countries in the implementation of the United Nations Sustainable Development Goals. BGK's loan is not only in line with this cooperation, but also with the Bank's mission and activities in the field of sovereign development assistance, which means that the loan was concluded directly by the Bank with the government of a third country.

"Bank Gospodarstwa Krajowego, known as the Polish development bank, has both knowledge and experience in supporting the development of micro, small and medium-sized enterprises. We therefore believe that the launch of the new BGK development assistance instrument for the Republic of Moldova, supported by a grant from the European Commission, will be an important step towards the country's energy transformation. Building modern aid instruments for developing countries creates opportunities for Polish companies to engage in international markets," says Paweł Chorąży, Executive Director of the European Funds Division of Bank Gospodarstwa Krajowego, "Moreover, in light of the historic decision of the European Council last week to start accession negotiations, the project implemented by BGK can be an important element of support in preparing the Republic of Moldova for accession to the European Union." - added Paweł Chorąży.

The involvement of development banks in development assistance allows combining public funds from donors and mobilising private capital. It is also about building a position on the international stage.

 


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