A small country with an emerging economy
Moldova is a small, landlocked country located in Eastern Europe, bordered by Romania to the west and Ukraine to the north, east, and south.
Moldova has a small population of almost 2.7 million people. Economically, Moldova is still ranked as a lower-middle-income economy in Europe, with a GDP per capita of USD $5 231. Remittance flows from Moldovans abroad made up 15% of the GDP in 2021. The country’s main exports include agricultural products such as fruits and vegetables, textiles, wine, and tobacco. Over 52% of its total trade is within the EU. Moldova’s main imports include energy products, machinery, and equipment.1, 2, 3
In June 2014, Moldova signed the Association Agreement with the European Union. The agreement establishes the framework for economic integration between Moldova and the EU, which includes the creation of the Deep and Comprehensive Free Trade Area (DCFTA). The DCFTA is seen as a key instrument for Moldova’s economic integration with the EU, and as a means of promoting economic growth and development in Moldova.4
The war in Ukraine has had a significant impact on Moldova, considering they are neighboring countries. As a result of the war, the country’s monetary policy has tightened significantly. From 2020 to 2022, the National Bank of Moldova raised its base interest rate from 2.65% to 21.5%.5 This decision was implemented in an effort to counteract high food and energy prices and stabilize the exchange rate. For banking institutions, this could mean increased lending rates, and a decrease in demand for loans. Non-banking financial institutions, such as alternative lenders, may potentially raise their interest rates in an effort to maintain a competitive edge and to seem attractive to investors, but the impact remains to be seen.
Alternative lending: Accessing an underserved population
Moldova is another European country that has faced significant economic challenges throughout its history, and this has shaped its alternative lending market. Following the dissolution of the Soviet Union in the early 1990s, Moldova faced a period of political and economic instability, which led to high levels of poverty and emigration.
The traditional banking sector in Moldova has been slow to develop, and as a result, alternative lending has emerged as an important source of credit for both individuals and businesses. Peer-to-peer lending platforms and other fintech startups have become increasingly popular, offering borrowers an alternative to the limited options provided by traditional banks.
One of the key advantages of alternative lending in Moldova is its ability to reach underserved and unbanked segments of the population. Only 64% of the adult population have a bank account, and many people have limited access to credit.6 Alternative lenders have been able to use technology and innovative underwriting methods to assess creditworthiness and offer loans to a wider range of borrowers.
A rapidly emerging loan portfolio
In Moldova’s alternative lending scene, key players to watch on Mintos are Eleving Group, IuteCredit, and Mikro Kapital. These lending companies have well-established loan portfolios in Moldova– at €36 million for Eleving Group, €47 million for IuteCredit and €29 million for Mikro Kapital.7
Lending activity in the alternative lending sector in Moldova has seen significant growth in recent years, with €41 million investments made in Notes and claims on Mintos in 2022 alone. With an increasing number of individuals and businesses looking for alternative sources of funding, the alternative lending market in Moldova has the potential to become a key contributor to the country’s economy.
If you’re interested in finding out more about how you can invest with Mintos, explore Moldova’s leading lending companies.
1 The World Bank in Moldova, The World Bank (Accessed March 2023)
2 Personal remittances, received (% of GDP), The World Bank (Accessed March 2023)
3 Moldova EU trade relations with Moldova. Facts, figures and latest developments, The European Commission (Accessed March 2023)
4 ibid.
5 Banca Națională a Moldovei (Accessed March 2023)
6 A. Demirgüç-Kunt, L. Klapper, D. Singer, S. Ansar, The Global Findex Database 2021: Financial Inclusion, Digital Payments, and Resilience in the Age of COVID-19 (Accessed March 2023)
7 The figures represented refer to the lending company’s loan portfolio on Mintos, minus provisions.
