Provision of a senior unsecured loan in the amount of up to US 10 million equivalent in local currency (BYN) to JSC Minsk Transit Bank ("MTBank"), a joint-stock company incorporated in Belarus, for on-lending to local private micro, small and medium enterprises, to be comprised of two equal tranches with the second tranche up to US 5 million uncommitted and available at the sole discretion of the EBRD.
This project is in line with the EBRD Belarus country strategy which is prioritising access to finance for the private sector as well as promotion of local currency lending in the country including ongoing policy dialouge in this area with local authorities.
The project will assist MTBank 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 micro, small and medium-sized enterprises ("MSMEs") in Belarus.
The project will promote local currency lending in Belarus, supporting the development of the domestic capital market in the country and the de-dollarisation of the economy as well as fostering a more stable financial environment.
ETI score: 60
The project will support the competitiveness of MTBank by facilitating the development of its MSME loan portfolio with a focus on new and regional borrowers. Requirements to comply with financial covenants and portfolio quality ratios will also contribute to the resilience of the institution.
MINSK TRANSIT BANK JSC
MTBank is a mid-sized privately-owned bank in Belarus ranked 11th by total assets among 24 banks as of 3Q 2019 and is one of the important providers of MSME and retail finance in Belarus with a market share of 1.7 per cent at end-September 2019.
EBRD Finance Summary
Equivalent of BYN 20,000,000.
Total Project Cost
- Terms: The Bank is additional because of its provision of medium-term LCY financing to help MTBank 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 FIF MSME Policy Statement, financial covenants and reporting requirements.
Environmental and Social Summary
Categorised FI (2019 ESP). MTBank's past performance and annual environmental and social (E&S) reporting to date for the existing exposures has been satisfactory. MTBank will need to comply with PRs 2, 4 & 9, including the FI Referral List for any sub-projects that include activities listed in Appendix A to PR 9. The bank will continue to implement the E&S Risk Management Procedures for MSME Loans, ensure that appropriate credit and risk management 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 MTBank'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 17 229 98 88 (ext. 1420)
Tolstogo Street, 10, Business Center "Titul", 220007 Minsk, Republic of Belarus
PSD last updated
04 Feb 2020
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