The provision of a senior unsecured local currency loan of up to BYN 10 mln (US$ 4 mln) to Belarusky Narodny Bank ("BNB-Bank") for on-lending to local private micro, small and medium-sized enterprises ("MSMEs"). This project is in line with Belarus country strategy, which is prioritising access to finance for the private sector as well as the promotion of local currency lending in the country.
The Project will assist BNB-Bank in mobilising longer-term wholesale funding in local currency, which will help to diversify the bank's funding base and expand local currency lending to private MSMEs in Belarus.
The Project will promote local currency lending in Belarus thus supporting the development of the domestic capital market in the country and de-dollarisation of the economy as well as fostering a more stable financial environment.
ETI score: 60
The Project will support the competitiveness of BNB-Bank by facilitating the development of its MSME loan portfolio supporting attraction of new and regional borrowers. Requirements to comply with financial covenants and portfolio quality ratios will also contribute to the resilience of the institution.
BELARUSKY NARODNY BANK
Belarusky Narodny Bank ("BNB-Bank"), an EBRD partner bank since 2011, is a mid-sized bank in Belarus, majority-owned by Bank of Georgia. Its activity is primarily focused on MSME lending.
EBRD Finance Summary
Total Project Cost
Terms: The Bank is additional because of its provision of medium-term local currency (LCY) financing to help BNB-Bank to increase supply of BYN loans to MSMEs.
Attributes: EBRD is one of very few institutions, which provide medium-term LCY funding in Belarus.
Conditionalities: Strict sub-loan eligibility criteria as defined by the Financial Intermediaries Framework MSME Policy Statement, financial covenants and reporting requirements.
Environmental and Social Summary
Categorised FI (2019 ESP). BNB-Bank is an existing client and its past performance and annual environmental and social (E&S) reporting to date for existing exposures has been satisfactory. The bank will need to comply with PRs 2, 4 and 9, including the updated Exclusion List introduced with ESP 2019 as well as the Referral List, continue to implement the E&S Risk Management Procedures for MSME Loans, ensure that appropriate credit staff undertake the Bank's on-line E&S E-learning training for FIs, and submit annual E&S reports to the EBRD. Sub-borrowers financed through BNB-Bank's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements.
Technical Cooperation and Grant Financing
Company Contact Information
+375 17 388 87 75
Belarusky Narodny Bank 87a Niezalieznasci ave., 220012, Minsk Belarus
PSD last updated
19 May 2020
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