May 28 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Thursday it is extending a 5 million euro ($5.5 million) loan to Moldova's Mobiasbanca - OTP Group, in order to expand access to finance for local businesses affected by the coronavirus crisis.
"EBRD funds will be on-lent to local companies, many of them suffering from the impact of the Covid-19 outbreak. Keeping businesses running despite the pandemic will help the Moldovan economy recover sooner," EBRD Head of Moldova Angela Sax said in a press release.
The EBRD loan to Mobiasbanca will be extended either in US dollars, in euro or Moldovan lei, depending on the needs of customers.
"More companies will have the opportunity to access financial resources for their growth and development, boosting their competitiveness and paving the way for market expansion," Mobiasbanca - OTP Group deputy CEO and commercial director Elena Guzun said.
The EBRD is expecting a 4% contraction in Moldova’s economy in 2020, followed by a recovery of 5% in 2021.
The new loan is part of the EBRD’s efforts to help countries in its regions to combat the impact of the coronavirus and support the recovery. The EBRD stands ready to provide support worth 21 billion euro this year and next, it said.
Mobiasbanca offers a full range of services to about 8,000 companies and 160,000 individuals through 53 branches across the country. OTP completed the acquisition of a 96.69% stake in Mobiasbanca - Groupe Societe Generale (MBSG) in July 2019.
($= 0.9096 euro)
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