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Proparco marks its first operation ever in Moldova with a €8 million loan to Microinvest
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The partnership, signed during AFD Group CEO Rémy Rioux’s first visit in Moldova, demonstrates the Group’s commitment to supporting Moldova and its private sector, which faces major challenges due to the economic repercussions of the conflict in Ukraine.
Founded in 2003, Microinvest has grown to become Moldova’s leading microfinance institution. Microinvest plays a key role for financial inclusion and increasing MSMEs access to financing, thus contributing to Moldova’s government SME Development Strategy. The microfinance institution is also known for its responsibility and commitment to client protection, as recognized by Client Protection certification, first granted in 2015, then reconfirmed in 2018.
The €8 million loan (close to MDL 160 million), offered by Proparco, will help Microinvest to serve an increased number of microentrepreneurs and MSMEs, including businesses in rural area and agricultural sector, and further develop its loan portfolio, that now exceeds MDL 3.5 billion (equivalent of €178 million).
Through this operation, Microinvest should be able to provide more than 1,800 loans and facilitate new investment opportunities for Moldovan entrepreneurs and individuals. Thus, Proparco’s loan should directly and indirectly support close to 3,600 jobs, over the next 5 years.
It demonstrates Proparco’s will to establish new partnerships with the Moldovan private sector and testifies to AFD Group’s commitment to play its role in supporting the country to overcome the consequences of the conflict in Ukraine.
“AFD Group stands with Moldova and its people through the current crisis. The loan granted today by AFD Group’s private sector financing arm Proparco to Microinvest, which will support thousands of jobs in the country over the coming years, is just a first step in a long term commitment to support Moldova’s public and private sector”, said Rémy Rioux, CEO Agence Française de Développement (AFD).
"We are very grateful, that in such uncertain times for our country, AFD Group, and in particular, Proparco, decided to start an important partnership with Microinvest and to finance Moldovan private sector. We believe that Proparco’s support to our non-bank business model will help households and entrepreneurs to have easy access to responsible and tailored lending. This cooperation will contribute to the economic and social development of our country and will increase foreign investors’ trust in Moldova.” Dumitru Svinarenco, CEO Microinvest.
This operation will contribute to Sustainable Development Goal #1 (No Poverty), #8 (Decent Work and Economic Growth) and #10 (Reduced Inequalities).
Microinvest is a non-bank lending institution operating in the Republic of Moldova. For over 19 years, the company managed to prove its major role in the Moldovan financial market by supporting local businesses, agriculture and individuals and hence, directly contributing to the development of the country’s economy. Microinvest main values are: responsibility, transparency, quality, resilience, and people.
According to the National Commission for Financial Markets, Microinvest has the largest loan portfolio among non-banking lending institutions in the country and its market share is 29 percent, as of the end of Q1 2022. About 70 percent of its portfolio is allocated to business clients, of which, over 40 percent to Agri sector.
More info: https://microinvest.md/en/