Access to finance in focus as Organization for SME Sector Development meets with local banks

The meeting between ODIMM and Partner Banks

On January 17, 2018, the Organization for Small and Medium Enterprises Sector Development (ODIMM) from Moldova held a meeting with partner banks to review performances of the Credit Guarantee Fund during the past year.

The Credit Guarantee Fund is a state-funded programme for SMEs implemented by ODIMM as part of the national policy on facilitating SMEs' access to financial resources. The fund was created in 2007 having the mission of ensuring access to finance for domestic enterprises by issuing financial guarantees.

ODIMM stated that 2017 saw an 76% increase in the portfolio of financial guarantees for SMEs, as a result of improvement of the guarantee processes, which made it possible to attract financial resources in the economy amounting to 231 million lei.

During the meeting, the priorities of the Credit Guarantee Fund for 2018 were also discussed, with a focus on simplifying the process of obtaining financial guarantees, a more efficient use of information technologies in the guaranteeing process, as well as the support of priority sectors of the economy.

The parties reiterated that for both ODIMM and partner banks, the development of guarantee processes remains a priority in order to further facilitate SMEs' access to financial resources.

The partners agreed that SMEs in the Republic of Moldova still perceive access to finance as the main obstacle to the development of the entrepreneurial sector.

Access to finance is one of the main pillars of the EU4Business initiative in Moldova. EU4Business programmes stimulate local currency lending for micro-enterprises and SMEs, as well as support for leasing and equity financing.

Moreover, SMEs have access to a range of advisory services, technical assistance and export support to help them meet the challenges of the DCFTA.