Project description
and objectives:
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The proposed project is an increase of up to EUR 250 million of the existing
Facility (currently amounting to EUR 1,100 million). It consists of a
framework operation in favour of financial intermediaries incorporated in the
EU Accession countries (Bulgaria, Romania, Croatia). The main objective of the
Facility is to promote and support sustainability of SME finance through
institution building. This is achieved through the combination of three
elements: (i) medium and long-term funds provided to participating financial
intermediaries (“PFIs”) to facilitate access to finance for SMEs in the
eligible countries, (ii) technical assistance to the PFIs to enhance their SME
finance ability and (iii) a Performance Fee designed to incentivise PFIs to
develop a good quality SME portfolio.
The proposed project will be supported by a contribution of European
Commission (“EC”) of EUR 24 million, which will bring the total EC
contribution to the Facility to EUR 180.75 million.
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Sub-projects:
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- EU/EBRD ext. 7 (Rural window) - CEC Bank S.A
- EU/EBRD Extension 7 - Raiffeisenbank Bulgaria (Rural)
- EU/EBRD Ext. 7 - Banca Transilvania (Rural Facility)
- EU/EBRD extension 7 - Bank Leumi Romania
- EU/EBRD SME Extension 7 Eurobank EFG Bulgaria
- EU/EBRD SME SG Expressbank second credit line
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Transition impact:
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The transition impact of the Facility stems from the following sources:
• financial intermediation in the eligible countries by encouraging PFIs to
reach out to micro and small enterprises which otherwise face difficulties in
accessing finance;
• institutional building among the PFIs through the provision of know-how, the
development of systems and procedures and the improvement of operating
efficiency focused on small business financing;
• development of SME financing as a sustainable source of business for PFIs,
which will have a demonstration effect in the market.
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The client:
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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 SME financing. Saving
and credit cooperatives may also be eligible under the programme.
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EBRD finance:
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EUR 250 million.
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Total project cost:
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EUR 250 million.
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Environmental impact:
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The PFIs 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 financed through the
Facility. The procedures to be adopted include the EBRD’s Environmental
Exclusion and Referral List. In implementing these procedures, the PFIs will
assess potential environmental issues associated with SMEs, which are required
to comply, at a minimum, with local/national environmental, health, safety,
labour and public consultation requirements.
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Technical
cooperation:
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Up to EUR 10 million, to be funded by the EC under the 2006 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 PFIs 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.
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Company contact:
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N/A
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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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