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The EBRD is considering
(i) the second replenishment of the “EBRD - Italy Western Balkans Local Enterprise Facility” (the “Facility”) originally approved on January 13, 2006 (BDS 06-011), with the first replenishment approved on January 8, 2008 (BDS06-11 (Addendum 1)); and
(ii) the expansion of the Facility’s operational territory to Croatia and Turkey.
With the expansion to Croatia and Turkey, the Facility will be renamed “EBRD-Italy Local Enterprise Facility” (“LEF” or the “Facility”).
This second replenishment of the Facility and the Expansion to Croatia and Turkey is pending Final Review (scheduled for 12 December 2008) and pending Board Approval (scheduled for 13 January 2009).
The Facility provides the Bank with an instrument to meet the growing business of local medium to large enterprises, currently not sufficiently supported by other financing sources. The Bank’s proceeds will be used by clients for financing of acquisitions, expansion and/or modernization investments, as well as working capital.
This second replenishment of the Facility by the EBRD will be in the amount of EUR 100 million. In this way the total commitment to the Facility will increase to EUR 165 million (including the existing allocation of EUR 50 million from the Bank’s ordinary funds, and EUR 15 million of special funds from the Italian Investment Special Fund contributed by the Italian government).
The size of the individual investments under LEF will be increased from EUR 8 million, at present, to up to EUR 10 million.
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