Moldova - Project FinancingMoldova - Project Financing
Moldova lacks a developed capital market. Banks are the only domestic source of project financing. However, interest rates are high, while the bulk of financing from banks is short-term. Given the relatively small size of Moldova's financing sector, a single bank may find itself under a great deal of pressure to provide lending for large projects.
Project financing is very limited unless implemented through subsidized loan programs funded by foreign governments and multilateral financial institutions, and aimed at private business development. Therefore, the role of international financial institutions such as the World Bank Group (International Bank for Reconstruction and Development IBRD, International Finance Corporation IFC and Multilateral Investment Guarantee Agency MIGA), the European Bank for Reconstruction and Development EBRD, and the European Investment Bank EIB to finance large projects is very important.
Multilateral Development Banks:
U.S. Commercial Service Liaison Offices at the Multilateral Development Banks (European Bank for Reconstruction and Development, World Bank)
The Commercial Service maintains Commercial Liaison Offices in each of the main Multilateral Development Banks, including the European Bank for Reconstruction and Development and the World Bank. These institutions lend billions of dollars in developing countries on projects aimed at accelerating economic growth and social development by reducing poverty and inequality, improving health and education, and advancing infrastructure development. The Commercial Liaison Offices help American businesses learn how to get involved in bank-funded projects, and advocate on behalf of American bidders. Learn more by contacting the Commercial Liaison Offices to the European Bank for Reconstruction and Development and the World Bank.
World Bank
Since Moldova joined the World Bank in August 1992, its lending has provided consistent support for Moldova's economic reforms, focusing on poverty alleviation and sustainable economic growth. Since the inception of its program in Moldova, the World Bank has committed almost USD 1.5 billion in support of 97 projects for the country.
The 2014-2017 World Bank's Country Partnership Strategy (CPS) for Moldova is the main assistance framework at the country level, which guides the World Bank's interventions in Moldova over the four-year period. Development assistance efforts in Moldova in the CPS aimed to boost shared prosperity and reduce poverty by capturing the full benefits of openness and integrating with the EU and the broader global economy to support a sustainable growth strategy. With the current CPS expiring the World Bank is preparing a new framework for its cooperation with Moldova to support the country’s emerging transition toward a new, more sustainable, and inclusive growth model.
Financing for commercial projects is available through the World Bank Group’s International Finance Corporation (IFC). The IFC makes loans and equity investments, organizes syndications, underwrites securities, and offers advisory services. IFC invests exclusively in for-profit projects and charges market rates for its products and services, which usually represent LIBOR plus country risk and project specific risk. A company or entrepreneur seeking to establish a new venture or expand an existing enterprise can approach IFC directly and submit an Investment Proposal for IFC’s review.
European Bank for Reconstruction and Development (EBRD)
In Moldova, the EBRD focuses on improving the business climate, supporting economic diversification, and reforming the energy and municipal sectors. In particular, the Bank supports private companies with direct investments, with intermediary finance through local banks, and by developing local business skills. It also pays particular attention to building a stable banking sector, promoting energy efficiency and improving corporate governance and transparency. EBRS's areas of priority are financing for the private and public infrastructure projects, financial institutions and support to local SMEs. The bank has implemented 115 projects with a net cumulative volume of EUR 1.173 billion.
Black Sea Trade and Development Bank
Established in 1998 by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russian Federation, Turkey, and Ukraine, the Black Sea Trade and Development Bank (BSTDB) has a cumulative portfolio in the key sectors of infrastructure, energy, transport, manufacturing, telecommunications, financial sector and other important areas amounting to about EUR 4.2 billion.
The Bank supports economic development and regional cooperation by providing trade and project financing, guarantees, and equity for development projects supporting both public and private enterprises in its member countries.
BSTDB’s strategy is to increase trade flows between member countries. The BSTDB also places great emphasis on private sector development. This entails supporting the development of small and medium-sized enterprises (SMEs) through development of local financial intermediation. The Bank seeks investment opportunities in infrastructure, energy, manufacturing, agriculture and food processing, retail and property sectors of Moldova, and considers using private-public partnerships as an instrument of activity wherever appropriate.
U.S. companies also have the option of getting financing and insurance for exports, investment, and development projects through such U.S. agencies as the U.S. Trade and Development Agency (USTDA), the U.S. Export-Import Bank (EXIM), and the Overseas Private Investment Corporation (OPIC). Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
Project financing is very limited unless implemented through subsidized loan programs funded by foreign governments and multilateral financial institutions, and aimed at private business development. Therefore, the role of international financial institutions such as the World Bank Group (International Bank for Reconstruction and Development IBRD, International Finance Corporation IFC and Multilateral Investment Guarantee Agency MIGA), the European Bank for Reconstruction and Development EBRD, and the European Investment Bank EIB to finance large projects is very important.
Multilateral Development Banks:
U.S. Commercial Service Liaison Offices at the Multilateral Development Banks (European Bank for Reconstruction and Development, World Bank)
The Commercial Service maintains Commercial Liaison Offices in each of the main Multilateral Development Banks, including the European Bank for Reconstruction and Development and the World Bank. These institutions lend billions of dollars in developing countries on projects aimed at accelerating economic growth and social development by reducing poverty and inequality, improving health and education, and advancing infrastructure development. The Commercial Liaison Offices help American businesses learn how to get involved in bank-funded projects, and advocate on behalf of American bidders. Learn more by contacting the Commercial Liaison Offices to the European Bank for Reconstruction and Development and the World Bank.
World Bank
Since Moldova joined the World Bank in August 1992, its lending has provided consistent support for Moldova's economic reforms, focusing on poverty alleviation and sustainable economic growth. Since the inception of its program in Moldova, the World Bank has committed almost USD 1.5 billion in support of 97 projects for the country.
The 2014-2017 World Bank's Country Partnership Strategy (CPS) for Moldova is the main assistance framework at the country level, which guides the World Bank's interventions in Moldova over the four-year period. Development assistance efforts in Moldova in the CPS aimed to boost shared prosperity and reduce poverty by capturing the full benefits of openness and integrating with the EU and the broader global economy to support a sustainable growth strategy. With the current CPS expiring the World Bank is preparing a new framework for its cooperation with Moldova to support the country’s emerging transition toward a new, more sustainable, and inclusive growth model.
Financing for commercial projects is available through the World Bank Group’s International Finance Corporation (IFC). The IFC makes loans and equity investments, organizes syndications, underwrites securities, and offers advisory services. IFC invests exclusively in for-profit projects and charges market rates for its products and services, which usually represent LIBOR plus country risk and project specific risk. A company or entrepreneur seeking to establish a new venture or expand an existing enterprise can approach IFC directly and submit an Investment Proposal for IFC’s review.
European Bank for Reconstruction and Development (EBRD)
In Moldova, the EBRD focuses on improving the business climate, supporting economic diversification, and reforming the energy and municipal sectors. In particular, the Bank supports private companies with direct investments, with intermediary finance through local banks, and by developing local business skills. It also pays particular attention to building a stable banking sector, promoting energy efficiency and improving corporate governance and transparency. EBRS's areas of priority are financing for the private and public infrastructure projects, financial institutions and support to local SMEs. The bank has implemented 115 projects with a net cumulative volume of EUR 1.173 billion.
Black Sea Trade and Development Bank
Established in 1998 by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russian Federation, Turkey, and Ukraine, the Black Sea Trade and Development Bank (BSTDB) has a cumulative portfolio in the key sectors of infrastructure, energy, transport, manufacturing, telecommunications, financial sector and other important areas amounting to about EUR 4.2 billion.
The Bank supports economic development and regional cooperation by providing trade and project financing, guarantees, and equity for development projects supporting both public and private enterprises in its member countries.
BSTDB’s strategy is to increase trade flows between member countries. The BSTDB also places great emphasis on private sector development. This entails supporting the development of small and medium-sized enterprises (SMEs) through development of local financial intermediation. The Bank seeks investment opportunities in infrastructure, energy, manufacturing, agriculture and food processing, retail and property sectors of Moldova, and considers using private-public partnerships as an instrument of activity wherever appropriate.
U.S. companies also have the option of getting financing and insurance for exports, investment, and development projects through such U.S. agencies as the U.S. Trade and Development Agency (USTDA), the U.S. Export-Import Bank (EXIM), and the Overseas Private Investment Corporation (OPIC). Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.