The Credit Line Directorate was established in 1995 within the National Bank of Moldova in order to implement the World Bank-funded credit line for private sector development. Since 2001 it was reorganized and transferred under the Ministry of Finance.
The CLD regulation was approved by Government Decision No. 953 of September 7, 2001, as amended by Government Decision No. 672 of June 19, 2006 and Government Decision No. 818 of September 26, 2014. The CLD was registered in the State Register of Law Entities at the State Registration Chamber on 27.02.2006 with IDNO 1008601000433. The CLD is located at: 277005, Republic of Moldova, mun. Chisinau, 57/1, Mitropolitul Banulescu-Bodoni Str., office 315.
The CLD has administrative and financial autonomy. It is a special unit that has been assigned the functions of on-lending and managing the credit line resources of the investment projects and programmes defined by the Government and the Ministry of Finance, financed from external loans and grants provided by the World Bank, the European Investment Bank, IFAD and other international financial organizations, to support and develop the country's economy, promote exports, support young entrepreneurs, create new jobs and develop new private enterprises.
On-lending is done through eligible local Participating Financial Institutions (PFIs), which assume all credit risks and conduct on-lending operations in accordance with the general conditions of the external state lending agreements of the Investment Programmes.
- Manage credit lines resources, in accordance with the terms of the external loans agreements signed between the Republic of Moldova and the World Bank, approved by the Parliament of the Republic of Moldova, as well as other investment projects and programmes financed by international financial organisations;
- Carry out and follow up on-lending operations of the accumulated circulating (revolving) funds of the Projects for new viable private sub-projects through the eligible participating financial institutions;
- Maintain records of all transactions related to the management of credit lines;
- Calculate and collect payments of principal and interest on sub-loans on-lent to intermediate financial institutions, to be reimbursed to the Ministry of Finance and international lending organisations;
- Carry out competitions on developing and implementing new projects of international financial organisations of reimbursable funds;
- Assess and monitor the participating financial institutions;
- Preparation of progress reports;
The Directorate performs its duties on the basis of the provisions of the national legislation and the provisions of the international loan agreements for on-lending operations through PFI, its internal regulations and instructions, operational procedures and project manuals coordinated with the external creditors.
- Evaluation, selection and designation of commercial banks and other financial institutions as participating financial intermediaries (intermediary PFIs assuming the credit risk) in the implementation of credit lines and the continuous monitoring of their financial performance and their right to intermediate credit line resources in accordance with the eligibility criteria;
- Elaboration and implementation of regulations, operational procedures and instructions on the use of credit line resources coordinated with creditors;
- Day-to-day management of credit lines and providing intermediaries access to its resources for further on-lending;
- Monitor compliance with the contractual terms, credit line guidelines and operational procedures by intermediary PFIs;
- Evaluation and approval of the private sub-projects submitted by the PFIs;
- Management of the provided technical assistance.
The Board of Directors is composed of five members, three of whom (including the President of the Council) are appointed by the Ministry of Finance, one by the National Bank and one by the Ministry of Economy. The CLD Council meets whenever necessary and takes final decisions on the following issues:
- Validation of operational procedures and approval of the Directorate’s regulations, amendments and supplements thereto, as necessary, approved by the World Bank or other international financial organisations;
- Approval/confirmation of selected financial institutions as financial intermediaries of credit line resources;
The Directorate's activity is led by the Head of the Directorate, reporting to the Ministry of Finance, donors and creditors. He/she coordinates the work of CLD and is responsible for the results obtained, is accountable for the financial assets and funds belonging to CLD and intended for the performance of its activity, represents the CLD in relations with third parties; submits proposals to the Council on selected PFIs to be approved or not as intermediaries of the granted resources, informs the Council on financing sub-projects submitted by PFI, submits amendments and supplements to the operational procedures of the credit lines for approval by the Council, coordinated with the donor international financial organisations, informs the Council on various issues that require its final approval and prepares the agenda for meetings of the Board of Directors.
The Directorate keeps the accounting records and prepares its reports in accordance with the legislation in force and the requirements of the external donors.