Luxembourg and Chișinău, 24 November 2022 – The European Fund for Southeast Europe (EFSE) has provided EUR 20 million equivalent in Moldovan Leu to OTP Bank Moldova. The investment forms part of the crisis response package whereby the fund has committed to financing micro, small and medium enterprises (MSMEs) operating in crisis-relevant critical sectors to mitigate supply-chain and logistics disruptions, as well as increase local production.
The new partnership was confirmed at the EFSE signing ceremony at the event entitled: “Winning in Extreme Uncertainty: The Power of Resilience” in Chișinău, Moldova, on 24 November 2022.
OTP Bank is the third largest bank in Moldova with a successful track record in servicing corporates, MSMEs, agricultural businesses and individuals. It leverages a dedicated team of professionals and a strong commitment to finance its clients in a responsible and tailored manner, which makes OTP Bank a strategic partner for EFSE to foster economic development in Moldova.
By providing the loan in local currency, EFSE enables OTP Bank to finance MSMEs in the same currency in which they receive their income, providing them with an extra layer of security in the currently challenging environment made difficult by the economic, social and security implications of the ongoing Russia-Ukrainian war.
EFSE Board Chairperson Klaus Müller said: “OTP Bank is an expert in servicing MSMEs and helping them to increase their competitiveness and resilience. We are honoured to partner with OTP Bank to jointly channel financing to entrepreneurs in local currency, which in these difficult economic times, is critical to safeguard economic development in Moldova.”
”The Financing agreement with EFSE is a vote of confidence and appreciation for OTP as a bank and Moldova as a country. Funding from EFSE resources allows to support our clients in this difficult economical period, particularly focusing on the financing needs of micro and small enterprises (MSEs). The economic growth could be accelerated by more investments, competitive offer of financial instruments and products, which are likely to eventually bring about lower costs for borrowing capital. We believe in the further success of the partnership and look forward to our efficient co-operation with the Fund. ” said Bogdan Spuza, President of the Executive Committee – CEO of the OTP Bank.
An impact investment fund established in 2005, the European Fund for Southeast Europe (EFSE) aims to foster economic development and prosperity in Southeast Europe and the Eastern Neighbourhood Region by investing in the success of micro and small enterprises as well as improved living conditions for private households. As access to financial services is key to developing this segment, EFSE focuses on helping local financial sectors strengthen their ability to provide responsible financing for this target group. Alongside its investment activities through local partners, EFSE multiplies its impact through the EFSE Development Facility, which provides technical assistance, training, and other nonfinancial support to entrepreneurs and institutions.
EFSE was initiated by KfW Development Bank with the financial support of the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Commission. As the first public-private partnership of its kind, EFSE draws its capital from donor agencies, international financial institutions, and private institutional investors.
Finance in Motion GmbH, Germany, serves as EFSE’s advisor and Hauck & Aufhäuser Fund Services S.A., Luxembourg, acts as manager.
For more information on the European Fund for Southeast Europe, please visit: www.efse.lu
For more information on Finance in Motion, please visit: www.finance-in-motion.com
About OTP Bank (Moldova)
OTP Bank S.A. is the 3rd largest bank in Moldova and a key lender, with over 30 years of experience, offering a full range of services to approximately 8,000 companies and more than 160,000 individuals through 53 branches across the country. OTP Bank is active in the retail and corporate segment as well, with a 15,1% share of loans and 15,7% share of deposits of the entire banking system. Being part of OTP Group since 2019 - the majority shareholder with 98.26%, OTP continues its developing focusing on digitalization, ESG strategy and client centricity.
OTP Group is one of the most stable and reliable financial services providers and a dominant banking player in the Central and Eastern European market, presented in 11 countries in the region. OTP Group is serving 16,3 million clients with more than 38,000 employees and has a network of over 1.400 branches. OTP Bank is the largest commercial bank in Hungary with a market share of 26% by total assets. The profitability of OTP Group in terms of ROE is the highest among European banking groups. OTP Group grants services in the field of insurance, real estate, factoring, leasing and asset management, investment and pension funds.