The Credit Line under the World Bank Competitiveness Enhancement Project II (CEPII) (Loan Agreement No.8400-MD) is in effect from November 5, 2014. The total loan amount is $ 30.0 million, including the Credit Line - USD 29.4 million, which are to be re-credited to private sector enterprises via the eligible financial institutions - Mobiasbanca - Groupe Societe Generale, Procreditbank, Comertbank, Fincombank and Banca Comercială Română.
The maximum amount of a sub - loan for investment projects is equivalent to USD 800.000 (which may include up to 40% working capital), and for the independent working capital and raw material - the equivalent of USD 500.000. The maximum total re-credited amount per beneficiary cannot exceed the equivalent of USD 800.000.
The beneficiaries of the sub-loans are private enterprises, which operate on the territory of the Republic of Moldova for at least 2 years, with more than 75% of the capital being privately owned.
Eligible activities for credit line financing - direct and indirect exports, carried out throughout the country (including Chisinau and Balti). Exports related to agriculture, agro-processing, manufacturing or other economic activity that provides goods and services (except consultancy services) that will be directly or indirectly related to the generation of export earnings. Indirect exporters (excluding utility, oil and other energy companies) shall be engaged in the supply of goods or services to the export oriented companies. The total amount re-credited to indirect exporters will not exceed 30% of the Credit Line. 100% of the eligible expenditure of the eligible sub-loan may be financed. Independent working capital, which is not linked to the export-oriented production process, will not be funded. Also, the working capital for utilities, oil and other energy sources, salaries (excluding salaries integrated in civil engineering contracts), finished products for consumption and resale also cannot be funded.
Maturity of sub-loans to beneficiaries - up to 8 years for investment sub-loans and up to 4 years for independent working capital sub-loans.
It is possible to retroactively finance the eligible expenditures funded by eligible banks in the period prior to the credit line's entry into force, but not earlier than May 7, 2014. The deadline for contracting funds from the credit line - 30 November 2019.
The interest rate on Credit Line funds for intermediate banks is based on: (i) for sub-loans in foreign currency – the rate is based on 6-month LIBOR market rates plus the external borrowing costs and operating expenses and currency risk; (ii) for sub-loans in MDL - the rates are based on the average inflation rate, the external borrowing costs, operational and foreign exchange cost margins, the credit risk margins of the intermediary bank. The annual interest rate is floating and is reviewed semi-annually - on 1st of October and 1st of April.
For the period April 01, 2020 - September 30, 2020, the annual interest rate on credit line funds for the participating banks is set as follow: for USD - 1.67%, for Euro - 1.16% and for MDL- 6.30%. For cost transparency, the interest rates for participating financial institutions are posted on the Ministry of Finance's website at http://mf.gov.md/ro/datoria-sectorul-public/projects-directorate-de-credit .
In order to negotiate a sub-loan, the final beneficiaries can apply to Mobiasbanca -Groupe Societe Generale, Procreditbank, Comertbank, Fincombank and Banca Comercială Română, with which the Ministry of Finance has signed agreements for re-crediting of the Project funds. Additional information on eligibility and how to access re-credited sub-loans within CEP II can be obtained from the Credit Line Directorate, tel. +022 238-246.