Project summary document

Project description
and objectives:

The proposed project is an increase of up to EUR 200 million of the existing Facility (totalling EUR 1,000 million). It consists of a framework operation in favour of financial intermediaries incorporated in the EU Accession countries (Bulgaria, Romania, Croatia) and in the New Member states (Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Republic, Slovenia). The Facility provides medium and long-term funds to banks and leasing companies with the aim to facilitate access to finance for the small and medium-sized enterprises (SMEs) in the above eligible countries.

The Facility provides a Performance Fee to compensate participating financial intermediaries for the extra administrative costs to finance SMEs and for the risks of entering a new market segment. Technical assistance Is also provided to enhance risk management, streamlining operations and for product development related to SME financing. To date, the European Commission (EC) has contributed EUR 138.75 million to support the institutional building element of the Facility.

Sub-projects:

• EU/EBRD Extension 6 - Unicredit Leasing II
• EU/EBRD Extension 6 - CEC Bank S.A
• EU/EBRD Extension 6 - OTP Romania (RoBank)
• EU/EBRD ext. 6 - SG Expressbank
• EU/EBRD Extension 6 - Union Leasing Bulgaria - Senior Loan
• EU/EBRD Extension 6 - Raiffeisen Leasing Croatia
• EU/EBRD SME Finance Facility - Raiffeisen Leasing Bulgaria
• EU/EBRD extension 6 - Erste Leasing Croatia
• EU/EBRD Extension 6 - BCR Leasing II
• EU/EBRD Extension 6 - Hrvatska postanska banka d.d. Croatia
• EU/EBRD ext 6 - Allianz Bulgaria Bank
• EU/EBRD Extension 6 - Volksbank Leasing Romania
• EU/EBRD extension 6 - BT Leasing II
• EU/EBRD Extension 6 - Piraeus Bank Bulgaria
• EU/EBRD Extension 6 - Raiffeisen Banka dd, Croatia
• EU/EBRD Extension 6 - Piraeus Leasing Bulgaria

Transition impact:

Transition impact of the Facility stems from two separate sources. First, the Facility targets the outreach of local banks and leasing companies to new micro and small enterprises, therefore its first source of transition impact is in the support to entrepreneurship. Second, the Facility targets the creation or improvement of sustainable sources of finance for micro and SMEs, therefore its second source of transition impact is in the demonstration of new ways to finance business.

The client:

Financing will be channelled through participating banks and leasing companies in the eligible countries that can demonstrate a satisfactory financial viability, a capable management team and commitment to small and medium-sized enterprises in their lending/leasing policy.

EBRD finance:

EUR 200 million.

Total project cost:

EUR 200 million.

Environmental impact:

The financial intermediaries funded by EBRD under the Facility must apply EBRD’s Environmental Procedures for Small and Micro Loans and Environmental Procedures for Leasing Companies respectively to all sub-loans and leases supported through the Facility. The procedures to be adopted will also include the Bank’s Environmental Exclusion and Referral List. In implementing these procedures, the financial intermediaries will assess potential environmental issues associated with SMEs, which are required to comply, at a minimum, with local/national health, safety and environmental requirements.

Technical
cooperation:

Up to EUR 9 million, to be funded by the EC under the 2005 contribution.

The technical cooperation funds will be used to contribute to institution building through enhancement and streamlining of SME lending/leasing procedures, training of staff, strengthening of Management Information Systems and marketing strategy, aiming to enable the participating institutions to build long-term capacity to provide financing to SMEs on a sustainable basis.

For consultant opportunities for projects financed by technical cooperation funds, visit procurement of consultants.

Company contact:

N/A

EBRD contact:

Teresa Godwin-Coombs, Operation Leader: godwint@ebrd.com

Business opportunities:

For business opportunities or procurement, contact the client company.

General enquiries:

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com