Chisinau/Luxembourg, 4 July 2017
An EU-backed programme enabling the European Investment Bank (EIB) to support small and medium-sized enterprises (SMEs) in the Republic of Moldova and other countries that have signed an Association Agreement with the European Union was launched in Chisinau today.
The goal of the Deep and Comprehensive Free Trade Agreement (DCFTA) Initiative East is to strengthen economic development in the target countries by providing financial and technical support to SMEs.
The EIB Group has joined forces with the EU’s Neighbourhood Investment Facility (NIF) to provide a comprehensive package of instruments designed to help companies in the Republic of Moldova, Ukraine and Georgia make the most of the opportunities arising from the implementation of their free trade agreements with the EU, which involve the progressive removal of barriers to trade and the alignment of standards with those of the EU.
This EU contribution forms part of the European Commission’s wider EU4Business initiative, which brings together EU-funded programmes supporting SME development and improving the business environment in the Eastern Partnership region.
“A well-developed private sector, represented particularly by SMEs, is crucial for economic growth and the creation of new job opportunities in the Republic of Moldova and for the diversification of its economy. It is therefore of high importance both for the Republic of Moldova and the European Union to contribute to strengthening the private sector and boosting its competitiveness. The EU4Business conference held today in Chisinau provided information about the opportunities offered by the DCFTA Initiative East and InnovFin – EU Finance for Innovators, for the benefit of private businesses in the Republic of Moldova”, commented Dario Scannapieco, EIB Vice-President responsible for the financing of SMEs and Midcaps.
The EU bank helps private clients access finance via financial intermediaries by offering improved lending terms and conditions. Furthermore, by means of risk-sharing instruments and advisory services it enables local banks to take on more risk and reach out to underserved segments of the economy.
During his intervention at the conference HE Pirkka Tapiola, Ambassador of the European Union to the Republic of Moldova, extensively outlined the support the European Union currently provides to, on the one hand, the Moldovan private sector within a DCFTA context and, on the other hand, to innovation and research, and specifically stated that: “Through the DCFTA Initiative East and the InnovFin programmes, the EIB will significantly contribute to the enhanced competitiveness of Moldovan economy in a global context. Namely SME financing and result-orientated innovation and research will be targeted. "
Other keynote speakers at the conference included Iuri Cicibaba, Deputy Minister of Finance of the Republic of Moldova who said: “Small- and medium-sized enterprises in general, and along agri-food value chains in particular, represent the backbone of the Moldovan economy and account for a sizeable portion of our GDP, employment and exports. The new EU4Business DCFTA Initiative East is most welcome as it will help us in terms of financial inclusion and competitiveness”.
The event was attended by CEOs, CFOs and the top management of SMEs and mid-sized companies as well as financial intermediaries, financial advisors and industry associations.
Background information:
The EIB – the European Union’s bank – finances projects in the Republic of Moldova on the basis of the EU External Lending Mandate. The mandate provides the EIB with a guarantee covered by the EU budget for projects in the areas of social and economic infrastructure, local private sector development, in particular SMEs, and climate change mitigation and adaptation.
The EIB is a AAA-rated, policy-driven EU financial institution that raises funds in capital markets to on-lend to eligible investments supporting EU policies and priorities. The EIB passes on the financial advantage it obtains through benefits such as attractive interest rates and long maturities to projects that score highly in terms of EU objectives and are consistent with the Bank’s commitment to supporting sound, sustainable investments. The EIB’s extensive experience in financing projects, its in-house sector expertise and its deep knowledge of European policies facilitate the identification of projects that meet both national and EU priorities. The EIB’s project appraisal covers technical, economic, financial, environmental and social aspects as well as credit risks, provides for the appropriate mitigants and conditionality and helps structure projects in line with EU standards. The EIB thus acts as a flag carrier for EU policies outside the EU, contributes to the dissemination of best practices and facilitates the participation of other financiers in EU priority projects.
The European Investment Fund (EIF) is part of the European Investment Bank group. Its central mission is to support Europe’s micro, small and medium-sized businesses by helping them to access finance. EIF designs and develops venture and growth capital, guarantees and microfinance instruments which specifically target this market segment. In this role, EIF fosters EU objectives in support of innovation, research and development, entrepreneurship, growth and employment.
Since the beginning of 2016 all EU activities that support small and medium-sized enterprises (SMEs) in the Eastern Partnership countries have come under the umbrella of EU4Business.
EU4Business provides:
- Support to national authorities, helping to change and improve laws and regulations, building a better regulatory framework to increase investor confidence;
- Support to Business Support Organisations (BSOs), as membership organisations enable a dialogue between government and business. EU4Business can organise PPD (Public-Private Dialogue), cooperation and networking;
- Direct support to small and medium-sized enterprises (SMEs), for example by providing finance, training, coaching and advice, and import and export support and matchmaking.
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