On 7th July 2016, EBA members had the exclusive opportunity to meet with Mr. Dimitri Gvindadze, the new head of EBRD (European Bank for Reconstruction and Development) Office in Moldova. Mr. Gvindadze shared some insights on the future direction and activities of EBRD in the country, with projects both in the private and public sector.
Mr. Gvindadze discussed the main factors that are jeopardizing the development of the banking sector in Moldova, namely the financial and political instability, which was prevalent in recent years. Mr. Gvindadze drew attention to the current vulnerabilities and incapacities of the Moldovan banking sector and the urgent need to push for transparency, rule of law and restore corporate governance. The Head of the EBRD underlined the necessity to boost private sector operations and highlighted the support that his institution can provide for the transition to a market economy. For the transition to take place, the Head of EBRD suggested 3 main prerequisites, specifically political hands off, macroeconomic stability and the drive to develop the sector. The EBRD representatives explained how the institution sustains the growth of SMEs (Small and Medium Enterprises) through programs such as EGPs (Enterprise Growth Programs), Advice for Small Businesses, assistance through financial intermediaries, all which help SMEs grow, attract investors and strengthen the private sector in Moldova. EBRD also provides high-level advocacy, supporting the efforts of the EBA Presidency of the Trade Facilitation working group in the Economic Council of the Prime Minister.
The meeting finished with a follow-up Q&A and discussion with EBA members, whose questions ranged from further plans of EBRD to procure shares in Moldovan banks, how to access EBRD funds, how to ensure the security of bank operations and the macroeconomic indicators that are to be expected in the nearest future.