Microinvest supports investments to modernize agriculture in Moldova

Meeting with Dumitru Svinarenco, General Director of Microinvest (Republic of Moldova), about investments in Moldovan agriculture in the main agricultural lending institutions.

1. Can you present Microinvest in a few words?

Microinvest is a non-banking credit institution with mixed capital. We have successfully demonstrated our leading role in the Moldovan financial market by supporting local businesses, agriculture, and individuals, and by directly contributing to the development of the country's economy.

We rank 6th in the banking system by the size of our portfolio, while maintaining first place in the non-bank credit market in the country.

We stand out from other financial institutions thanks to the personalized solutions and significant advantages in the lending process we offer to each client, including agricultural entrepreneurs. We are the only Non-Bank Financial Institution (NBFI) in Moldova to hold the international quality certificate – SMART, which proves that we are a responsible and trustworthy lender.

2. Agriculture is one of the fundamental pillars of the Moldovan economy and is also a priority sector for Microinvest. How did 2020 affect your clients and your organization?

Every year, the agricultural sector grows and modernizes thanks to successful entrepreneurs and responsible investments. 30% of our overall loan portfolio and more than 40% of our business loan portfolio are dedicated to the agricultural sector, supporting businesses and farms that need financial investment for quality agriculture.

The year 2020 had a major impact on the Moldovan agricultural sector, directly impacted by the Covid-19 crisis, but also by the unprecedented drought we experienced. Harvests this season were very poor.

3. How did you go about helping the agricultural sector cope with these crises?

Microinvest was among the first organizations to waive penalties for both entrepreneurs and individuals. Throughout this period, our experts assessed each entrepreneur's situation. We were flexible in finding solutions to restructure and extend loan terms without charging fees.

From the outset of the crisis, we continued to lend to farmers to enable them to begin the growing season on schedule. Despite the challenges, some of our clients have managed to develop successful family businesses and generate positive returns from their investments.

4. Microinvest has been funded by the Grameen Crédit Agricole Foundation (FGCA) since 2020. How has the Foundation supported your organization during this pandemic?

Microinvest began working with FGCA in 2019 and signed the first loan agreement in May 2020, at the height of lockdown restrictions imposed by most countries.

This first loan from the Foundation provided impetus to other lenders, demonstrating that even new lenders were confident in our financial stability and ability to respond to the crisis. The second loan was already disbursed in March 2021.

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

5. What will be your strategic priorities for the coming years? What role do you play in digitalization?

Digitalization plays a key role in our communications and development strategy. We take a balanced approach, combining digital automation with personalized customer interactions, on-site visits, and direct interactions.

Entrepreneurs value the expertise and depth of a personalized approach that allows us to offer tailored financial solutions. At the same time, we're increasingly opting for the massive digitalization of retail services, which simplifies the lending process and saves our clients valuable time.

We are convinced that agriculture in Moldova is one of the strategic pillars of our country. We support individuals and legal entities in their business growth and transformation projects. In 2021, we introduced a special offer for business clients – unsecured loans up to MDL 1,700,000, so they can confidently achieve their goals.

Both farmers and we have high expectations for the new agricultural season. A good year will provide additional impetus to the agricultural sector, but it will also increase our willingness to invest in modernizing farming practices by purchasing new, more efficient equipment.

Learn more about Microinvest.