MSME Financing Framework for Western Balkans & Croatia

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 36821

Status Complete

Location

Regional

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 36821

Status Complete

Location

Regional

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

16 May 2006

Disclosure date

13 Apr 2006

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 EUR 75 million framework builds on the positive experience of the existing Western Balkans SME Finance Framework and aims at broadening the outreach of financial institutions in Albania, Bosnia and Herzegovina, FYR Macedonia, Serbia and Montenegro (together the “Western Balkans”) and Croatia towards smaller business clients and micro businesses in particular, while helping improve financial intermediation and strengthening competition in the financial sectors of these countries. Specifically, the new framework will include debt facilities to partner commercial banks, leasing companies and non-bank microfinance institutions (“NBMFIs”) for on-lending and leasing transactions in favour of micro, small and medium enterprises (“MSMEs”). In addition, the framework will include equity investments in selected financial intermediaries and guarantees to NBMFIs for borrowing from local commercial banks. In Croatia the Framework will primarily aim at supporting NBMFIs.

Transition Impact

The facility will support the financial sectors in Western Balkans and Croatia through a combination of debt and equity financing and will promote adherence to best practices in corporate governance and strengthen financial discipline. The facility is aimed at improving financial intermediation specifically in favour of the MSME sector in the region by providing access to medium and long-term financing.

The Client

Participating banks, NBMFIs and leasing companies.

EBRD Finance

EUR 75 million in debt, equity and guarantee facilities to financial intermediaries. The first proposed transaction under the Framework will be a EUR 3.0 million senior loan to FINCA Kosovo.

Project Cost

Not applicable.

Environmental Impact

The project will comply with EBRD’s Environmental Procedures for Small and Micro Loans and for Intermediated Financing through Local Banks in respect to MSME components. These include compliance with applicable national environmental, health and safety legislation, adherence to the Environmental Exclusion List, submission of Annual Environmental Report to the Bank and nomination of a senior staff member in charge of the environmental issues.

Technical Cooperation

Technical cooperation funding of up to EUR 10 million will be sought in order to achieve the stated goals under this Framework. It is envisaged that Framework projects with partner banks and leasing companies will be accompanied with appropriate TC to support institution building aimed at establishing sustainable MSME finance operations and expanding their outreach. TC projects with participating NBMFIs will be aimed at general institutional strengthening, including supporting their transformation into regulated banks.

Transition impact

ETI Score:75

PSD last updated

01 Feb 2019

Business opportunities

For business opportunities or procurement, contact the client company.

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Email: procurement@ebrd.com

General enquiries

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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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