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Banca Sociala 1 - Multipurpose Loan I.

Moldova | Financial Institutions

Identification Code:: OP/07/0644
Total Operation Cost:: — EUR
Maturity:: 12 months
Operation Status:: BSTDB Approved Amount – Approval Date

4.000.000 EUR – 16 Jun 2007
: BSTDB Signed Amount – Signed Date

4.000.000 EUR – 18 Jun 2007
: Status:
Completed
Description and Purpose of the Operation:: Provision of a Bank to Bank Multi-purpose Loan to Banca Sociala to strengthen its liquidity and support its business expansion. The project aims to fund the business development of the Borrower and subsequently benefit its corporate, SME and retail clientele through provision of quality financial services.
Countries of Operation:: Moldova (100,00%)
Financial Product:: Loans
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Banca Sociala was established in 1991 and is a successor to Moldova's former state owned Zhilsots Bank, (Bank for Construction and Social Programmes), Banca Sociala rates second among Moldovan commercial banks in loan portfolio size and it is considered one of the leading banks in Moldova. Banca Sociala is 100% privately owned following a voucher privatisation process in 1990-91. At present it employs circa 950 staff and serves more than 25,000 customers though the head office, 19 branches and 4 representative offices covering all of the country’s districts. The bank provides full range of banking activities, including operations with precious metals. The bank is not rated.
Co-Financers/Participants:: —
Guarantors/Sponsors:: —
Developmental and Regional Cooperation Impact:: The project contributs to the business expansion and financial strengthening of Banca Sociala. it will have a positive spill-over effect to its SME clientele, local traders and many individual retail clients that are the market's most dynamic element of growth and would not otherwise have access to international funding. The loan to Banca Sociala demonstrates BSTDB's commitment to support Moldova's banking sector. To facilitate the economic development in member countries, BSTDB supports local financial intermediaries and help this key sector of the economy grow.
Environmental Classification and Impact:: The Borrower is required to comply with BSTDB's Negative List of Goods, including the Environmental Exclusion List and the national environmental requirements, as well as make sure that the beneficiaries fully comply with these requirements.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org