US$ 15 million contribution to finance small businesses across the Bank’s region
The European Bank for Reconstruction and Development (EBRD) and the International Cooperation and Development Fund (TaiwanICDF) have signed a US$ 15 million contribution agreement to co-finance loans to small and medium-sized enterprises (SMEs) in the agribusiness sector.
Access to finance remains a key constraint to SME development in the countries where the EBRD invests. Without financing, small businesses are not able to expand, thrive and create jobs. The funding provided by TaiwanICDF will increase the EBRD’s capacity to provide the required financing for agribusiness private sector projects where syndication would otherwise be difficult to achieve.
Alain Pilloux, EBRD Managing Director for Industry, Commerce and Agribusiness, said: “This agreement confirms our strong cooperation and our common goal to boost the private sector in the region. The growth of SMEs is fundamental for a healthy market economy and we are delighted to be able to commit more resources to this end”.
Weber V.B. Shih, TaiwanICDF Secretary General, said: “For the past few decades, TaiwanICDF has worked with the EBRD on the development of small businesses and environmental projects. The new partnership to set up an agribusiness account will enable both organisations to work together to assist local agribusiness in upgrading the efficiency of the production processes. The programme also echoes the international development agenda, particularly related to food security”.
TaiwanICDF is also contributing US$ 80 million to the EBRD’s work in energy efficiency and climate change through its Green Energy Special Fund and US$ 57.5 million supporting small business via financial intermediaries.
In addition, the EBRD enjoys strong cooperation with Taiwanese companies, with total joint Taiwanese-EBRD investment standing at over US$ 1.1 billion, predominantly in financial institutions, industry, commerce and agribusiness.