FIF - Belarusky Narodny Bank LCY loan II

Location:

Belarus

Project number:

52148

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

19 May 2020

Status:

Approved

PSD disclosed:

19 May 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

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.

Project Objectives

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.

Transition Impact

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.

Client Information

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

USD 4,115,226.25

Total Project Cost

USD 4,115,226.25

Additionality

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

None.

Company Contact Information

Anton Slesarev,
aslesarev@bnb.by
+375 17 388 87 75
www.bnb.by
Belarusky Narodny Bank 87a Niezalieznasci ave., 220012, Minsk Belarus

PSD last updated

19 May 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Project Complaint Mechanism (PCM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g., through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s accountability mechanism.

The accountability mechanism independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit our webpage to find out how to submit a complaint through the confidential online form, by email, mail or telephone. We are available to discuss your concerns and answer any questions you may have about the submission or handling of complaints. Complainants’ identities may be kept confidential upon request.

Please note that after the appointment of the new mechanism Head in 2020, the revised Project Accountability Policy and Guidance will come into effect to guide case handling.

 

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