Project description
and objectives:
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The proposed project is an extension of the Framework for SME and MSE finance
approved by the Bank in November 2004 (BDS04/163), the allocated amount of USD
25.0 million will be fully committed before the end-2006. The proposed
extension in the total amount of additional USD 25.0 million will support the
development of private sector in Belarus and will be utilised substantially on
the same terms and conditions. The key objective of the project will be to
enhance private banking and enterprise sectors, to support SME and MSE lending
by Belarusian private banks.
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Sub-projects:
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- Belarus MSEFF - MinskTransit Bank
- Belarus MSEFF - Belrosbank
- Belarus MSEFF - Reconversion & Development Bank (RDB)
- Belarus MSEFF - Minsk Transit Bank II
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Transition impact:
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The Facility is expected to have an excellent transition impact as it will
provide support to and contribute to the growth of the private sector banks.
By working with the banks which are active throughout the country, the project
will also contribute to the evolution of a more broadly-based banking system.
The Framework will provide a swift access to much needed financing for MSEs
and SMEs on a commercial and sustainable basis. The project will also
demonstrate to other local banks that lending to the MSE and SME is
commercially viable and will, therefore, encourage them to cater for this
market niche and improve the overall level of financial services provided to
Belarusian entrepreneurs. Policy dialogue with the Government of Belarus,
which to-date has had some positive spill-over effect on the whole banking
sector, will continue.
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The client:
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Private eligible Belarusian banks. The first bank proposed is ZAO “Minsk
Transit Bank” is a medium-sized private commercial bank, is the 14th largest
commercial bank in Belarus by the size of its assets with a market share of
0.6%.
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EBRD finance:
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Senior loans in USD to participating banks.
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Total project cost:
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USD 25 million.
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Environmental impact:
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The project will be carried out by the Participating Banks (PBs) in compliance
with EBRD’s Environmental Procedures for Intermediate Financing through Local
Banks and the Environmental Procedures for Small and Micro Loans, including
adherence to the EBRD Environmental Exclusion and Referral List for FIs. PBs
will need to ensure that their SME/MSE sub-projects meet the national
environmental, health and safety and labour requirements. Within each PB, a
member of senior management will need to be appointed to be responsible for
the environmental risk management and the implementation of the environmental
procedures. PBs will be required to submit annual environmental reports to the
Bank.
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Technical
cooperation:
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The proposed Framework will be accompanied by TC for the MSE component which
was provided by the EU in 2006 in the amount of EUR 400,000 for 18 months.
The intensity, duration and modality of further TC financing will depend on
the availability of TC funds.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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Minsk Transit Bank:
Ms Irina Kuraeva
VP business development
E-mail:
IKuraeva@mtb.minsk.by
Tel: +375 17 213 29 19
Address: 6A,
Partizanski prospect, Minsk, Republic of Belarus, 220033
Website:
www.mtb.by
Belrosbank:
Mr Vladimir Dragun,
Head of International Trade Operations Dpt.
E-mail:
dragun@belrosbank.by
Tel: +375 17 289 76 85
Address: 7,
Krasnaya St., Minsk, Republic of Belarus 220029
Website:
www.belrosbank.by
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EBRD contact:
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Inna Yabbarova, Operation Leader: yabbaroi@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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