Microinvest supports investments in the modernization of Moldovan agriculture | Microinvest

Interview with Dumitru Svinarenco, Chief Executive Officer of Microinvest (Republic of Moldova) about investments in Moldovan agriculture in main facilities of Agri loans.

  1. Could you present Microinvest in a few words?

Microinvest is a non-bank credit organization with mixed capital. We managed to prove our major role in the Moldovan financial market by supporting local businesses, agriculture and individuals and directly contributing to the development of the country’s economy.

According to the size of the portfolio, we rank 6th among the banking system, while maintaining the leading position on non-bank credit market in the country. We are different from other financial companies thanks to the customized solutions and important benefits in the lending process that we offer to each client, including agricultural entrepreneurs. We are the only NBFI in Moldova to hold the international quality certificate – SMART, which proves that we are a responsible and trustworthy lender.

  1. Agriculture is one of the basic pillars for the Moldovan economy and it is also a priority sector for Microinvest. How did the 2020 drought and Covid-19 affect your clients and your organization?

Every year, the agricultural sector is developing and modernizing thanks to successful entrepreneurs and responsible investments. 30% of our overall LP and more than 40% of our business Loan Portfolio is dedicated to the agri field, to the support of agricultural businesses and farms, which need financial investments for quality agriculture.

The year 2020 had a major impact on the Moldovan agricultural segment, which were directly confronted with the Covid-19 crisis, but also with the unprecedented drought, which led to a season with minimal harvests.

  1. What has been your response to support the agricultural sector to cope with these crises?

Microinvest was among the first organizations to cancel the penalties at the beginning of the pandemic, both for business owners and individuals. Throughout this period, our experts have assessed the situation of each entrepreneur. We have been open to come up with solutions for restructuring and extending the terms of loans, without charging fees.

As the pandemic had just started, we continued to lend to farmers so that they could begin the agricultural season as planned.  Despite the difficulties, some of our clients have managed to develop successful households and gather great results from the investments made.

  1. Microinvest is funded by the Grameen Crédit Agricole Foundation (GCAF) since 2020. How has the Foundation supported your organization during this pandemic?

Microinvest started the interactions with GCAF in 2019 and signed the first loan agreement in May 2020, at the peak of the highest lockdown restrictions imposed by most countries. This first loan from GCAF was an impulse for other lenders, proving that even new lenders believed in our financial stability and in our adequate reaction to crisis. The second loan has already been disbursed in March 2021.

The Foundation maintained transparent communication with us, listened to our needs and supported the search for suitable solutions. We consider GCAF as a reliable partner, therefore we plan to develop and strengthen our cooperation in the future.

  1. Which will be your strategic priorities for the years to come? What place have you given to digitalization?

Digitization occupies a special place in our communication and development strategy. We follow a balanced formula: combining digital automation with personal discussions with customers, visits and direct interactions. Entrepreneurs appreciate the expertise and the value of an individual approach which lead to tailer-made financial solutions. At the same time, we tend to go for the massive digitization of retail lines, simplifying the lending process, and thus saving our customer time.

We are confident that agriculture in Moldova is one of the strategic segments for our country. We support individuals and legal entities in their plans for growth and business transformation. In 2021, we came up with a special offer for business clients – unsecured credits up to MDL 1,700,000, so that they can successfully achieve their goals. Both we and the farmers have high expectations for the new agricultural season. A good year will give additional strength to the agricultural sector, but also additional desire to invest in the modernization of agricultural practices, by purchasing new high-performance equipment.

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