EU/EBRD Extension 7 - SME Finance Facility FRW

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 37360

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 37360

Status Complete

Location

Regional

Business Sector

Financial Institutions

Notice Type

Private

Environmental Category

Approval Date

18 Oct 2006

Disclosure date

15 Sep 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 proposed project is an increase of up to EUR 250 million of the existing Facility (currently amounting to EUR 1,100 million). It consists of a framework operation in favour of financial intermediaries incorporated in the EU Accession countries (Bulgaria, Romania, Croatia). The main objective of the Facility is to promote and support sustainability of SME finance through institution building. This is achieved through the combination of three elements: (i) medium and long-term funds provided to participating financial intermediaries (“PFIs”) to facilitate access to finance for SMEs in the eligible countries, (ii) technical assistance to the PFIs to enhance their SME finance ability and (iii) a Performance Fee designed to incentivise PFIs to develop a good quality SME portfolio.

The proposed project will be supported by a contribution of European Commission (“EC”) of EUR 24 million, which will bring the total EC contribution to the Facility to EUR 180.75 million.

Transition Impact

The transition impact of the Facility stems from the following sources:

• financial intermediation in the eligible countries by encouraging PFIs to reach out to micro and small enterprises which otherwise face difficulties in accessing finance;

• institutional building among the PFIs through the provision of know-how, the development of systems and procedures and the improvement of operating efficiency focused on small business financing;

• development of SME financing as a sustainable source of business for PFIs, which will have a demonstration effect in the market.

The Client

Financing will be channelled through participating banks and leasing companies in the eligible countries that can demonstrate a satisfactory financial viability, a capable management team and commitment to SME financing. Saving and credit cooperatives may also be eligible under the programme.

EBRD Finance

EUR 250 million.

Project Cost

EUR 250 million.

Environmental Impact

The PFIs funded by EBRD under the Facility must apply EBRD’s Environmental Procedures for Small and Micro Loans and Environmental Procedures for Leasing Companies respectively to all sub-loans and leases financed through the Facility. The procedures to be adopted include the EBRD’s Environmental Exclusion and Referral List. In implementing these procedures, the PFIs will assess potential environmental issues associated with SMEs, which are required to comply, at a minimum, with local/national environmental, health, safety, labour and public consultation requirements.

Technical Cooperation

Up to EUR 10 million, to be funded by the EC under the 2006 contribution. The technical cooperation funds will be used to contribute to institution building through enhancement and streamlining of SME lending/leasing procedures, training of staff, strengthening of Management Information Systems and marketing strategy, aiming to enable PFIs to build long-term capacity to provide financing to SMEs on a sustainable basis.

Company Contact

N/A

Transition impact

ETI Score:55

PSD last updated

25 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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