Moldova—ICS Total Leasing SA, Moldova, Improvement of Risk Management

Client: European Bank for Reconstruction and Development

Duration: 2011-2012

Region: Eastern Europe and Central Asia

Country: Moldova

Solutions: Economic Growth

To support the development of the small and medium enterprises sector in Moldova, the European Bank for Reconstruction and Development Bank, through the Moldovan Financial Sector Framework, approved a loan facility of €1.5 million to ICS Total Leasing SA in December 2010. The technical assistance attached to this loan facility will support ICS Total Leasing (TL) in developing effective portfolio quality management and successfully overcome the current challenging business environment precipitated by the global financial crisis.

Sample Activities

  • Improve the client risk assessment analysis conducted by credit analysts and the sales staff.
  • Improve the quality of the lease approval recommendations prepared by the credit analysts for the attention of TL management.
  • Improve TL’s risk assessment analysis for customers with potential currency risk.
  • Improve the collection function, particularly for payments in arrears.
  • Develop links with agricultural equipment providers for agriculture leasing.
  • Revise company structure.

Select Results

  • Completed an operational risk analysis, which included the topics of reconciliation, IT risk, insurance indemnity, tax risk, interest risk, legal risk, insurance frauds, overdues, insurance risk, settlement risk, compliance risk, currency risk, liquidity risk, asset risk, accounting risk, vendor risk, fraud risk
  • Provided three materials for training on balance sheet assessment, profit and loss assessment and financial ratio calculation, as well as workshops on negotiation skills and sales techniques.
  • Offered guidance the TL management team and a spreadsheet on how to use Net Present Value to manage the profitability of a contract and the portfolio.
  • Lowered arrears in the portfolio at risk from 7.20 percent in September 2011 to 5.36 percent in December 2011.


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