EBRD provides €10 million for energy efficiency projects in Moldova


5 November 2012 – London – The European Bank for Reconstruction and Development (EBRD) has announced two EBRD loans of €10 million in total to Moldova-Agroindbank for on-lending to homeowners and private enterprises for energy efficiency projects.  The loans are extended under the Moldovan Residential Energy Efficiency Financing Facility (MoREEFF) and Moldovan Sustainable Energy Efficiency Financing Facility II (MoSEEFF II) and will enable Moldova-Agroindbank to provide long-term funding to industrial and residential clients implementing energy saving projects.

Moldova relies heavily on imports to satisfy its energy needs. High energy costs and energy losses, coupled with outdated equipment and obsolete energy infrastructure make Moldova one of the most carbon intensive countries in Europe. This is harmful to the environment and results in high energy bills for individuals and businesses. With the EBRD financing, clients in Moldova will be able to invest in energy efficient appliances and materials for their properties and industries. This will help to significantly reduce energy consumption. Lower costs for enterprises will lead to increased competitiveness and benefit economic development.

Announcing the new loans, Henry Russell, EBRD Director for Financial Institutions in Western Balkans, Croatia, Belarus and Moldova, said: “By providing Moldova-Agroindbank with two credit lines the EBRD is helping citizens, families, housing associations and businesses in Moldova to invest in energy efficiency projects. In challenging economic times, when energy prices are rising and people and private companies are struggling to pay their bills, energy efficient solutions are becoming more attractive and, with EBRD funding, more accessible.”

“We are pleased to be expanding our long-term cooperation with the EBRD and continue to drive our clients towards the most cost-effective solutions. The EBRD’s credit lines will ease the burden of the immediate costs of energy saving investments, which in the long run will allow our clients to considerably decrease energy expenses thanks to efficiency gains.

Our participation in this project demonstrates once again our responsiveness and expertise in providing the most relevant and useful financial solutions for our clients.” said the President of Moldova-Agroindbank, Natalia Vrabie.

With 21 years of experience, Moldova-Agroindbank is the leading bank in Moldova, with a strong commitment to financing energy efficiency projects for both industrial and residential clients, from its own and third party sources. The two new credit lines build on the successful implementation by Moldova-Agroindbank of numerous EBRD credit lines since 1995.

The EBRD will also provide technical assistance funded by the European Union and Sweden to help Moldova-Agroindbank to further build up its expertise and marketing strategies in financing energy efficiency investments.

Since the beginning of its operations in Moldova, the EBRD has signed 88 investment projects in the country, covering energy, transport, agribusiness, general industry and banking sectors, for a cumulative amount of almost €711 million. The EBRD’s energy efficiency activities in Moldova are part of a greater effort to help Moldova increase its energy security.

For more information about EBRD projects in Moldova, go to http://www.ebrd.com/pages/country/moldova.shtml

The European Bank for Reconstruction and Development (EBRD) was established in 1991 to nurture the private sector in central and eastern Europe and ex-soviet countries. Today the EBRD uses investment to help build market economies and democracies in countries from central Europe to central Asia. The EBRD is the largest single investor in the region and mobilizes significant foreign direct investment beyond its own financing. Owned by 61 countries and two intergovernmental institutions, the EBRD provides project financing for banks, industries and businesses. For more information, visit http://www.ebrd.com/index.htm

Source: EBRD