Financial package to support domestic SMEs and Belarusian exporters
The EBRD is extending a €20 million financing programme to Bank Moscow-Minsk (BMM), an institution with about 250.000 retail and corporate clients across Belarus.
The package will consist of two facilities: a USD10 million credit line for micro, small and medium-sized enterprises (SMEs) and a €10 million trade limit available to support international trade operations under the EBRD’s Trade Facilitation Programme (TFP). In addition to supporting Belarus exporters and importers, the cooperation under TFP will provide BMM with financial know-how for the development of trade finance.
The funds are extended in the context of the preparations of Bank Moscow-Minsk for privatisation, which was agreed between the government of Belarus and the EBRD in 2016. They will complement joint efforts to strengthen BMM’s corporate governance in line with best international practice and improve its commercial operations.
Alex Pivovarsky, EBRD Head of Belarus, said: "We are very pleased that the EBRD is engaging with Bank Moscow-Minsk. Our financial sector policy dialogue with the government of Belarus is aimed at the creation of a sustainable banking sector in the country. By signing this transaction we demonstrate steady progress in the right direction."
Igor Likhogrud, Chairman of the Board of OJSC Bank Moscow-Minsk, said: "Our Bank is constantly looking for the ways to expand its business and to cooperate in this process with reputable partners that may bring their invaluable experience and assist in creating competitive advantage. We are sure that this landmark agreement with the EBRD will benefit both sides and will help to boost the implementation of the Bank’s development strategy. We are ready to continue exploring further opportunities and intensify our dialogue with the EBRD within the framework of Memorandum of Understanding signed by the National Bank of Belarus and the EBRD."
Since the start of its operations in Belarus in 1992, the EBRD has invested almost €1.8 billion in some 70 projects in various sectors of the country's economy.