MICRO-LENDING PROJECT - UNIVERSAL BANK

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A loan of US$ 1 million to Universal Bank for medium-term on-lending to private micro-entrepreneurs in Moldova. Project objectives: 1) Support for a private sector financial institution committed to the local market and expansion of its term-lending operations focusing on the micro-enterprise sector; 2) Development of financial intermediation; and 3) Indirect financing of micro- investment projects. The loan will support the growth, development and strengthening of a private sector institution and the private sector in general by providing funds needed for the development of private micro-enterprises in Moldova. Universal Bank is one of the leading private sector banks servicing the corporate and retail sectors in Moldova. As of end 1996, Universal Bank had net worth totalling US$ 3.3 million and total assets of US$ 10.4 million. The loan of up to US$ 1 million will provide funding to increase medium-term lending to Moldovan micro-entrepreneurs. The financing is a sub-project of the Swiss-American Micro-Enterprise Programme, which was approved by the Board on 19 June 1996. US$ 1 million (ECU 0.8 million equivalent). The project does not require an environmental analysis or an environmental audit. Sub-projects will be financed in accordance with the EBRD's environmental procedures for financial intermediaries. On an annual basis, Universal Bank will report to the EBRD on environmental issues associated with the loan and the sub-loans. The Swiss and American authorities provide technical cooperation funding for the Programme.