Taipei China has pledged $12 million to increase its support for EBRD projects with micro, small and medium size enterprises (MSMEs) across the EBRD region, stretching from central Europe to central Asia.
The EBRD and the Taipei China authorities signed two agreements to increase the cooperation between Taipei China and the Bank.
EBRD President Thomas Mirow signed a Memorandum of Understanding (MoU) with the Secretary General of the International Cooperation and Development Fund (TaiwanICDF)*, Lien-gene Chen.
Under the MoU, the Fund will provide $10 million to co-finance EBRD projects for privately-owned MSMEs in EBRD’s countries of operations.
This investment is a further contribution to EBRD’s Financial Intermediary Investment Special Fund** and will be used to lessen the liquidity constraints on MSMEs by providing equity investment and lending via financial intermediaries.
President Mirow signed an additional agreement with the Representative of the Taipei Office in the UK, Hsiao-Yueh Chang, boosting the collaboration between Taipei China and the Bank.
This agreement is aimed at increasing cooperation between Taipei China and EBRD by an additional $2 million grant, which will be used for technical assistance in EBRD projects in the region.
“The additional support offered by Taipei China to EBRD projects is particularly valuable in the current economic environment. This contribution will help alleviate the impact of the crisis on MSMEs in the region that are have limited access to finance”, EBRD President Thomas Mirow said during the signing ceremony.
“I am pleased to affirm our deep commitment to the Bank’s mandate through the new contribution of US$ 12 million. The funding comes at the perfect time to help implement the Bank’s expanding business plan for 2009. We will continue to work closely with the EBRD and other donors to facilitate the transition development in the region”, said Ms Chang.
Taipei China has a long-standing collaboration with the EBRD, with its first technical cooperation fund being established in 1991 and the first co-financing signed in 1994. With the latest investment announced today, Taipei China’s contribution in support of EBRD projects exceeds $75.6 million.
*TaiwanICDF - the bilateral executing agency of Taipei China’s foreign assistance programme
** Financial Intermediary Investment Special Fund – EBRD instrument to finance, among other things, debt facilities for local private companies operating in countries of operations.