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EBRD invests in Bulgaria's Unionbank
Finance enhances Unionbank's support to local enterprises
The European Bank for Reconstruction and Development has purchased a 15 per cent equity stake in Bulgaria's Unionbank, which specialises in offering services to the country's burgeoning small and medium-sized enterprise sector.
Unionbank will expand and improve the range of its services through investments in new products, management information systems, branch network and services. The bank also intends in the medium term to contribute to the consolidation of the Bulgarian banking sector through mergers or acquisitions.
Since July 2000, the EBRD has provided Unionbank funding under a range of regional programmes supporting small businesses and trade. This latest investment further enhances the relationship and demonstrates the way the EBRD aims to work with its best clients over the long term.
The EBRD's investment will allow Unionbank to strengthen its position as a leader in banking services to SMEs, said John Chomel-Doe, the EBRD's Director for Bulgaria. Mr Chomel-Doe said the EBRD is supporting a successful medium-sized Bulgarian bank that is locally owned.
The bank will carry out its operations in accordance with the EBRD's Environmental Procedures for Local Banks. In implementing these procedures, the bank will require its borrowers to comply, at a minimum, with national and local health, safety, environmental and public consultation requirements.
To improve the institutional development impact associated with taking an equity stake in Unionbank, the EU Phare has agreed to provide technical assistance to fund two separate consultancy positions to provide advice and support to Unionbank.
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