IFC supports FinComBank to attract investment and boost growth in Moldova amid COVID-19
Chisinau, Moldova, November 11 2021– To assist financial institutions in their response to the COVID-19 crisis, IFC will support FinComBank in its efforts to improve risk management practices and strengthen its core banking activities. This will help cope with the liquidity constraints that micro, small and medium enterprises (MSMEs) face in the country, thus supporting economic stability.
According to the World Bank, Moldova was one of the most affected countries in Europe by COVID-19, with a GDP decline of 7% in 2020. Credit risk continued to pose a significant threat to stability the banking sector. In response, the government introduced a series of measures to stimulate private sector recovery through structural reforms.
By contributing to government efforts, IFC will advise FinComBank on how to grow sustainably, improve performance and align risk management strategies with international standards. This will allow the bank to increase lending to small businesses in Moldova and serve them better. IFC will also help the bank develop financial and operational risk management tools to ensure sufficient reserve capital to face future crises. This will strengthen FinComBank’s resilience in the midst of COVID-19, allowing the bank to emerge stronger.
“Global and local changes and transformations are also altering the bank’s demands for efficiency, transparency and compliance with regulatory requirements. Partnering with the largest international financial institution, IFC, will help us update and improve our structure and business model. This will allow the bank to easily adapt to changing times, including rapid technological innovations while meeting the expectations of our customers, ”said Dana Scripnic, Interim CEO of FinComBank SA.
The advisory project is based on the results of IFC’s Covid Response Diagnostic Program in Europe and Central Asia launched in early 2021.
“The role of the banking sector is essential to accelerate economic growth in Moldova,” said Jason Pellmar, IFC’s regional director for Ukraine, Belarus and Moldova. “Our partnership with FinComBank will help build a sustainable banking model based on international best practices, essential for attracting long-term investments. This commitment is a key element of our broader country program, aimed at improving the country’s business environment in order to promote an inclusive and resilient economic recovery. “
IFC’s investment and advisory work in Moldova draws on more than a decade of experience across all sectors and aligns with the World Bank’s Country Partnership Framework, which supports the transition of the country towards a new model of more sustainable and inclusive growth through advice, financing and partnerships.
IFC, a member of the World Bank Group, is the world’s largest private sector-focused development institution in emerging markets. We work in over 100 countries, using our capital, expertise and influence to create markets and opportunities in developing countries. In FY2021, IFC committed a record $ 31.5 billion to private businesses and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
On FinComBank SA
FinComBank SA, one of the main commercial banks in the Republic of Moldova, was founded in 1993. FinComBank SA offers a wide range of business, investment and insurance banking services for local and foreign citizens. The clients of FinComBank SA include individuals, micro, small and medium-sized enterprises, as well as large companies which represent all the main sectors of the economy of the country. Over the years, the Bank has successfully cooperated with the World Bank, the European Fund for South East Europe and the Overseas Private Investment Corporation (OPIC). FinComBank is a member of the Rural Development Project (IFAD), the Village Investment and Services Project (RISP) and the Competitiveness Improvement Project (PACI, PACII). For more information, please visit www.fincombank.com