The European Bank for Reconstruction and Development (EBRD) is extending a senior loan worth up to US$ 5 million to privately owned MTBank. The proceeds will allow MTBank, an important finance provider for smaller businesses in Belarus, to enhance its lending to Belarusian micro, small and medium-sized enterprises.
The loan will be provided in local currency and will help mitigate foreign exchange risks both for MTBank and small companies with no foreign currency revenues.
Francis Delaey, the EBRD’s Head of Office in Belarus, said: “We are delighted to sign this local currency facility with MTBank, one of our long-standing partner banks in Belarus. With this project we are not only providing loans with longer maturities to domestic small businesses but also promoting lending in local currency, which is another important objective for us in Belarus.”
The EBRD is a major investor in Belarus. As of 1 September 2014 the Bank had committed over €1.4 billion across 66 projects.