The provision of a senior unsecured loan of up to € 7 million (in local currency equivalent) to Belaruski Narodny Bank (BNB-Bank) for on-lending to local private micro, small and medium-sized enterprises (MSMEs) under Financial Intermediaries Framework (FIF), to be made available in one tranche.
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 provide essential and timely support to a long-standing privately-owned partner-bank in Belarus. It will facilitate the adjustment to operational challenges caused by the Covid-19 pandemic and the continuation of sustainable local currency lending to MSMEs.
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.
BELARUSKI NARODNY BANK
Belaruski Narodny Bank (BNB-Bank), an EBRD partner bank since 2011, is a mid-sized bank in Belarus, owned by Bank of Georgia. Its activity is primarily focused on MSME lending.
EBRD Finance Summary
In local currency equivalent.
Total Project Cost
In local currency equivalent.
The Loan will be highly additional because of its: (1) Financing structure: medium-term funding in LCY, currently unavailable in the Belarusian market; (2) Standard-setting: 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 is an existing client and its past performance and annual environmental and social (E&S) reporting to date for existing exposures has been satisfactory. Due to the current situation in Belarus, particular attention has been paid to the application of PR2 and the impacts of COVID-19. Additional information and clarifications provided by BNB's HR department have confirmed compliance with PR2, including workers grievance mechanism, and that BNB has put in place risk management procedures regarding Covid-19. The bank will need to continue to comply with PRs 2, 4 and 9, including the updated E&S 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's loan will be required to comply with national environmental, health, safety and labour (EHSL) requirements.
Technical Cooperation and Grant Financing
This project was approved in the context of the Bank's response to the COVID-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to COVID-19, and this deviation, can be found on our website.
Company Contact Information
+375 17 388 87 75
Belaruski Narodny Bank 87a Niezalieznasci ave., 220012, Minsk Belarus
PSD last updated
03 Dec 2020
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