Project description
and objectives:
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Extension to the EBRD-EU regional finance facility for ten EU accession countries (Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic and Slovenia). The facility provides term loans and equity finance to financial intermediaries to facilitate the expansion of lending to small and medium-sized enterprises (SMEs).
The EBRD will now further extend the programme to include independent leasing companies and leasing subsidiaries of selected banks in the accession countries. The Board of Directors approved the expansion on 4 September 2001.
Fourth extension: EBRD Board approved an additional €125 million for the loan window and a leasing window.
Fifth extension: EBRD Board Approval is sought for up to €150 million additional debt for banks and leasing companies.
The project aims to support the growth and development of private sector SMEs by creating access to term loans or equity. It will also establish new business financing practices in financial intermediaries so that these acquire more experience in dealing with SMEs and create a revenue stream.
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Sub-projects:
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- EU/EBRD Phase II ext - Volksbank Hungary
- EU/EBRD Phase II ext. - BZ WBK
- EU/EBRD Phase II ext. - MKB Euroleasing
- EU/EBRD Phase II ext. - Raiffeisenbank Polska
- EU/EBRD Phase II ext. - ING Bank Slaski II
- EU/EBRD Phase II ext. - Raiffeisenbank Czech R.
- EU/EBRD Phase II ext. - Raiffeisen Bank Romania
- EU/EBRD Phase II ext. - Europejski Fundusz Leasingowy
- EU/EBRD Phase II ext. - Unilizings
- EU/EBRD Phase II ext. - United Bulgarian Bank
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Transition impact:
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Medium-term funds to SMEs are only available in rare cases; the weakness of the financial sector is even more conspicuous at the level of very small enterprises. The project will help to create employment opportunities in the private sector.
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The client:
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Further financing will be channelled through intermediaries in ten EU accession countries that can demonstrate a satisfactory level of financial viability, a capable management team and commitment to small and medium-sized enterprises SMEs in their lending/investment policy.
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EBRD finance:
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Phase II: The EBRD allocated an additional €450 million to the €125 million already provided for the loan window; the Bank is also providing €21.25 million to an equity window, which is supplemented by €21.25 million equity financing from the European Commission.
Addition to Third Extension: EBRD Board Approval is sought for an additional €125 million for the loan window and a leasing window.
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Total project cost:
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EBRD debt funding for banks and leasing companies amounts to €575 million, and financing for investments funds equals €21.25 million. EC supports the banks and the leasing companies with €85 of which €42.5 million is for technical cooperation. EC resourses available for equity funds account for €21.25 million.
Maximum sub-loans will be up to €125,000 (exceptionally, €150,000) and maximum amounts for equity participation will be €1 million.
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Environmental impact:
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Financial institutions included in the facility will be required to apply the EBRD’s Environmental Procedures for Financial Intermediaries to all loans and investments supported through the facility. In implementing these procedures, the financial intermediaries will assess potential environmental issues associated with client SMEs, which are required to comply, at a minimum, with local/national health, safety, environmental and public consultation requirements.
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Technical
cooperation:
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Additional €2 million for a total of approx. €4.5 million. The technical cooperation funds will be used to contribute to institution-building within the financial sector of the ten accession countries by providing training and technical assistance to banks in order to build long-term capability to provide SMEs with access to financing.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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EBRD contact:
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Teresa Godwin-Coombs, Operation Leader: godwint@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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