Moldova: EIB Group extends EU-backed guarantees to two banks, unlocking new finance for local businesses

This article is brought to you in association with the European Parliament.

• The EIB Group has signed guarantee agreements with ProCredit Bank S.A. (Moldova) and Victoriabank S.A., boosting the capacity of banks to support Moldovan small businesses.
• These guarantees will mobilise over €77 million in bank financing for nearly 1 000 Moldovan businesses, helping them invest, expand and create jobs.
• The financing made available to two Moldovan banks has been facilitated by the support of the European Union under the EU4Business Guarantee Facility programme.

The European Investment Bank (EIB) and the European Investment Fund (EIF) – jointly the EIB Group – have signed two guarantee agreements with ProCredit Bank S.A. (Moldova) and Victoriabank S.A. to enhance access to finance for small and medium-sized enterprises (SMEs) in Moldova. The guarantees are backed by the EU4Business Guarantee Facility, financed from the budget of the European Union.

Thanks to the guarantees, Moldovan partner banks will mobilise more than €77 million in fresh financing for SMEs. This will give almost 1 000 businesses across the country access to loans on significantly better terms than those normally available.

“Today’s agreements send a clear signal of the EIB Group’s strong commitment to Moldova’s private sector,” said EIB Vice-President Teresa Czerwińska. “SMEs are the backbone of the economy, and these EU-backed guarantees will give hundreds of Moldovan companies easier access to finance, helping them invest, grow, and create new jobs.”

The guarantees reduce financing costs and make borrowing easier by lowering collateral requirements – the assets or property that companies usually have to pledge to secure a loan. By easing this burden, the initiative enables businesses to invest with confidence, expand their activities and create new jobs.

“Small and medium-sized enterprises represent 99% of all businesses in the European Union and are crucial to the EU economy. In the Republic of Moldova, SMEs are the main driver for innovation, job creation, economic growth and prosperity. The new local financing facilitated through the EU4Business Guarantee Facility programme is expected to help Moldovan SMEs to benefit from unprecedented opportunities stemming from the EU accession process of the Republic of Moldova and by access to the Union single market,” said Ambassador of European Union to the Republic of Moldova Iwona Piórko.

Through the agreements with ProCredit Bank S.A. (Moldova) and Victoriabank S.A., this support will reach entrepreneurs across many sectors (such as manufacturing, agriculture, trade and others), strengthening their growth prospects and contributing to Moldova’s overall economic resilience.

“B.C. ProCredit Bank S.A. Moldova prioritises MSME lending, with 84% of loans to business clients. We have expertise in financing complex projects, capturing 19% of the agro sector and 11% of production companies. Our partnership with the EIB Group allows us to support businesses lacking collateral, using an EIB Group guarantee during construction. This is crucial for clients without the necessary collateral. We also finance sorting lines, specialised equipment and working capital. Clients incur no additional costs as we cover the guarantee costs. This benefits both the bank and clients, enabling new projects and comprehensive support,” said Chairperson of the Management Board of ProCredit Bank S.A. Irina Coroi-Jovmir.

“We would like our SME clients to grow faster and gain easier access to financing. With this EU-backed guarantee, Victoriabank will offer flexible credit solutions tailored to each business, enabling entrepreneurs to invest in equipment, expand their operations and seize new opportunities. This mechanism gives our clients a practical and reliable way to plan and put their strategies into action with confidence,” said Chief Executive Officer of Victoriabank Levon Khanikyan.

Background information

EIB 

The European Investment Bank (EIB) Group is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, the capital markets union, and a stronger Europe in a more peaceful and prosperous world.  

EIB Group and Moldova: Since establishing its presence in Moldova in 2007, the EIB’s total investment in the country has reached about €1.75 billion across more than 30 projects. These investments support EU policy objectives in key sectors such as energy security and efficiency, transport, healthcare, agriculture, private sector growth and forestry. As the European Union’s financing arm, the EIB continues to support Moldova’s development and path towards EU integration through strategic investments, including under the European Union’s Growth Plan for Moldova.

ProCredit Bank Moldova

B.C. ProCredit Bank S.A. is a development-oriented commercial bank. The bank offers high-quality services to micro, small and medium-sized enterprises, providing them with financial solutions tailored to their specific needs. For individuals, we aim to become a universal bank dedicated to clients who prefer to manage their banking operations through electronic channels, offering savings and lending services to meet their various financial needs. In our activity, we are guided by a few fundamental principles: we focus on transparency in communication with clients, we are committed to minimising the direct and indirect impact on the environment by promoting and financing ecological investments, and we offer services based on a deep understanding of each client’s situation, supported by rigorous financial analysis. We offer simple and accessible saving solutions, along with online banking services, to encourage a culture of saving and financial responsibility.

Victoriabank

With a 35-year history in Moldova, Victoriabank is the country’s third-largest bank. Majority-owned by Banca Transilvania and the European Bank for Reconstruction and Development (EBRD), Victoriabank is dedicated to supporting the local economy, fostering innovation and promoting sustainable development. With a network of 64 branches and more than 1 200 employees, the bank serves around 360 000 clients, offering secure, modern financial solutions tailored to their needs.