The project

With a loan of EUR 175,000 Mikro Kapital Moldova will provide loans to about 17 entrepreneurs from the Republic of Moldova. The proceeds will go to micro and small businesses from sectors like agriculture, trade and transport services. 

Mikro Kapital Moldova targets micro and small entrepreneurs, either juridical or physical persons, and individuals for providing access to credits. It offers a range of solutions to its clients taking into account the individuality of every business. The financing is provided in the form of:

• Loans for business (for micro and small business clients)
• Loans for agribusiness (for farms and agro companies)
• Loans “Home” (to improve living conditions by purchasing apartments/houses)
• Rapid loans (fast track loans) (small working capital needs, acq. of small value fixed assets, other purposes)
• Consumer Loans.

The loans provided can be in the range of 250 EUR up to 250,000 EUR. However, the average loan size is much smaller in reality - below 10,000 EUR. The maturity can be from 3 months up to 7-10 years (this is very rare and may be in the case of HOME loans). The actual average maturity of loans is below 2 years. Normally the repayments are in the form of annuities. Agricultural loans may benefit from some grace period of up to 9 months. In terms of collateral and other securities, about 63% of the portfolio is secured by hard collateral and in addition, all loans have guarantors (suretyship). “Home” loans are guaranteed with a mortgage (purchased apartment/house). The purchased assets (tractors, agricultural machines, equipment etc) are also pledged.

The Story of Mikro Kapital

Mikro Kapital Company Moldova is a non-bank credit organization that provides loans to micro and small enterprises and private individuals in the Republic of Moldova. The company is part of Mikro Kapital Group (registered in Luxembourg) and 100% owned by Alternative Fund, a Luxembourg-based Securitization Fund, managed by Mikro Kapital Management. In December 2021, Mikro Kapital Group had more than one billion EUR assets under management with operations in 14 countries.

The company was registered on 4th April 2013 and was developed from scratch. They operate from their head office in the capital Chisinau and their 11 branches across the country in the towns of Balti, Soroca, Edinet, Drochia, Comrat, Cahul, Causeni, and Ungheni.In July 2022, Mikro Kapital Moldova had 79 employees, the Total Assets surpassed 33 mln EUR, and the Gross Loan Portfolio reached more than 29 mln EUR. In the last two years, the Total Equity of the company has grown by about 2.5 mln EUR and achieved 6.9 mln EUR. At the same time, the portfolio quality has been maintained quite well – the PAR>90 - 0.8%. Since the beginning of its activity, the company provided more than 8,500 loans in the amount of 80 mln EUR.

At the end of June 2022, Mikro Kapital Moldova is in 4th place (up by two positions since the year 2020) by volume of Gross Loan Portfolio (leasing not included) among the 136 active non-bank credit organizations

Mikro Kapital’s mission

• to support local businesses by offering our products and services in every locality of the country.
• to encourage and financially support micro, small and medium-sized entrepreneurs to improve their living conditions, create new jobs and develop according to the proposed goals.
• to support the development of the regions they operate by promoting efficiency and innovation.
• to be a reliable partner that continuously invests in its employees, that contributes to their development, and treats its customers and partners with respect.

Highlights or Awards

The company was awarded in 2018 with the Notorium Silver Award, for the best-known company in the sector. 

About the Republic of Moldova

Moldova is a small country in Europe, bordered by Romania and Ukraine. Its capital is Chisinau, and it has a population of around 3.5 million people in an area of approximately 33.8 thousand square kilometres.

Despite being one of the poorest countries in Europe, Moldova has made significant progress in reducing poverty and promoting inclusive growth since the early 2000s. The economy has been expanding by an average of 4.6 percent per year for the past 20 years. This growth is driven by people spending money and receiving money from family members working abroad. However, Moldova faces challenges from difficult global conditions and unfavourable weather.

The country's total economic output, known as GDP, is about 12 billion USD, with a per capita GDP of 3.4 thousand USD. The annual inflation rate remains within a target range set by the National Bank.

Agriculture plays a vital role in Moldova's economy, despite having low overall productivity. It contributes 10.1 percent to the GDP and employs nearly 32 percent of the workforce. Within the agriculture sector, about 25 percent are directly employed by agri-enterprises, while the rest are self-employed. Manufacturing, food processing, textiles, footwear, and other industries make up 22.7 percent of the GDP and employ 16.6 percent of the active population. The economy is gradually shifting towards services, with the insurance, legal consultancy, telecommunications, and ICT sectors driving growth. The services sector now represents nearly 55.4 percent of the GDP and employs half of the workforce.

Although the official unemployment rate in 2019 was low at around 3 percent, emigration is a widespread phenomenon in Moldova and has a significant impact on the country's demographics and economy. It is estimated that between 600,000 and one million Moldovan citizens, almost 25 percent of the population, are working abroad.