BELARUS SME/MSE FRAMEWORK

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 35582

Status Complete

Location

Belarus

Business Sector

Financial Institutions

Notice Type

Private

Sub-projects

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 35582

Status Complete

Location

Belarus

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

30 Nov 2004

Disclosure date

08 Oct 2004

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The proposed Framework to the amount of US$ 25.0 million consists of senior loans to commercial banks in the Republic of Belarus. Under this Framework, loans will be extended directly to the participating local banks which will in turn on-lend these funds to private Micro, Small and Medium-sized Enterprises.

Initially two banks will be considered for participation in the Framework: Belgazprombank (BGPB) and Prior Bank (Prior). Additional private banks will be included in the Framework at a later stage. The Framework will enable EBRD to meet the growing demand for finance from Micro, Small and Medium-sized Enterprises across Belarus and to further strengthen institution building in the Belarusian banking sector.

Transition Impact

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 banks active throughout the country, the project will support the development of a more broadly-based banking system and allow for a deeper outreach to Micro, Small and Medium-sized Enterprises throughout the country.

The Framework will provide swift access to much needed financing for Micro, Small and Medium-sized Enterprises on a commercial and sustainable basis. The project will also demonstrate to other local banks that lending to the Micro, Small and Medium-sized Enterprises sector 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 on private sector development issues will continue.

The Client

The two potential clients under the Frameworks are:

Joint Belarusian-Russian Open Joint-Stock Company “Belgazprombank” is a medium-sized commercial bank, the eighth largest commercial bank of Belarus by the size of its equity and assets base. The Bank is owned by Gazprom (33.91%), Gazprombank (33.91%), Belarusian Ministry of Economy (8.63%) and Beltransgaz (23.5%).
Prior is a Joint Stock Company owned by Raiffeisen Zentralbank Österreich AG (“RZB”) through its wholly owned subsidiary Raiffeisen International AG (“RI”) (61.3%), EBRD (13.5%) and others (25.2% with the individual stakes of under 3%). Prior is the third largest bank in Belarus in terms of equity (8.8% market share), assets (10.9%) and loan portfolio (10.5%), as of end-2003 and the largest private bank, as well as the only subsidiary of a western bank in Belarus.

EBRD Finance

The Framework will consist of credit lines in the total amount of US$ 25 million, of which Belgazprombank and Prior Bank will receive US$ 6 million and US$ 10 million respectively.

Project Cost

US$ 25 million.

Environmental Impact

The project will be carried out in accordance with EBRD’s Environmental Procedures for Intermediate Financing through Local Bank and Environmental Procedures for Small and Micro Loans.

Both Priorbank and Belgazprombank demonstrated full compliance with EBRD’s environmental requirements for financial institutions within the existing sovereign guaranteed Belarus Credit Line for Small and Medium-Sized Enterprises.

Technical Cooperation

It is envisaged that the proposed Framework will be accompanied by technical co-operation for Micro and Small-Enterprises component that is currently estimated at € 1.0 million for the next 24 months.

To date, US$ 150,000 has been preliminary approved by USAID with other sources of funding being explored as well. Eligibility for TC will be prioritised in favour of smaller local banks.

Company Contact

Belgazprombank

Mrs Avramenko Tatiana, Head of MSE/SME unit
60/2, Pritytskiy str.,
Minsk,
Republic of Belarus,
220121

E-mail: Avramenk@bgpb.minsk.by

Tel: +375 17 2594157

Website: www.belgazprombank.by

Prior Bank

Mrs Shishenko Elena, Director of Structured and Project Finance division
31-A, Khoruzhei str.,
Minsk,
Republic of Belarus,
220002

E-mail: Elena.Shishenko@Priorbank..by

Tel: +375 17 2173447

Website: www.priorbank.by

Transition impact

ETI Score:100

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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