Poland and EU Boost Energy Efficiency in Moldova: 5 Million Euro Loan Agreement to Empower SMEs

Small and medium-sized enterprises (SMEs) in the Republic of Moldova will be able to access funding for the implementation of projects in the field of energy efficiency. This will be possible after representatives of the Bank Gospodarstwa Krajowego (BGK) from Poland and the Ministry of Economic Development and Digitalization of Moldova signed a loan agreement worth 5 million euros today in Chisinau. This will be supplemented by a grant from the European Union, amounting to approximately 1.6 million euros.

Deputy Prime Minister Dumitru Alaiba, Minister of Economic Development and Digitalization stated that the financial resources will be used for the development of the economy and support for local producers, who will have the opportunity to access loans for an extended period under predictable conditions. “By signing this agreement, we will provide small and medium-sized enterprises with more financial instruments through the Organization for Entrepreneurship Development (ODA) and financial institutions. The investments will contribute to the competitiveness of companies, help them adapt their production and equipment to new conditions and requirements, become more energy-efficient, reduce emissions, and create new jobs,” affirmed the Deputy Prime Minister.

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The Head of the European Union Delegation to the Republic of Moldova, Jānis Mažeiks, specified that “together we can make Moldova’s economy more sustainable, inclusive, and developed.”

“I am delighted to express my sincere pleasure at the European Union’s contribution of approximately €1.6 million to facilitate this loan and provide essential technical assistance. The support extended to the advancement of entrepreneurship and Micro, Small, and Medium Enterprises (MSMEs) exemplifies the EU’s comprehensive strategy for private sector development in Moldova. It also stands as a prominent initiative within Moldova’s participation in the European Investment Plan for the Eastern Partnership.

I am particularly gratified by the inclusion of BGK in the cohort of European financial institutions actively engaged in Moldova. Our collective efforts are instrumental in enhancing the competitiveness, inclusivity, and sustainability of Moldova’s economy. Together, we are forging a path towards a more robust and resilient economic landscape.” – Jānis Mažeiks, Ambassador of the European Union to Moldova.

According to the Ambassador of Poland to Chisinau, Tomasz Kobzdej, “the credit will be used to support small and medium-sized enterprises, which are the foundation of a healthy economy.”

The BGK loan will be granted to the Republic of Moldova for seven years. It will support the Entrepreneurship and Economic Growth Fund of Moldova (FACEM), managed by ODA, to provide loans to small and medium-sized enterprises in the country on favorable terms. The support from the European Union consists of supplementing the loan granted by BGK through a grant, reducing the loan’s interest rate for Moldova, and providing a technical assistance grant, which includes assistance in completing loan applications or conducting energy audits.

“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. At the end of the year, we are ready for the second FACEM product, which comes with the same conditions for entrepreneurs. The fixed interest rate for investment loans is only 7%.

The proposed implementation mechanism will allow us to provide banks with cheap resources for loans up to 10 years. It will give more predictability, stability, and confidence to entrepreneurs,” said Dumitru Pîntea, ODA Director.