Project Description
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.
Project Objectives
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.
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
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
EUR 7,000,000.00
In local currency equivalent.
Total Project Cost
EUR 7,000,000.00
In local currency equivalent.
Additionality
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
Anton Slesarev
aslesarev@bnb.by
+375 17 388 87 75
www.bnb.by
Belaruski Narodny Bank 87a Niezalieznasci ave., 220012, Minsk Belarus
PSD last updated
03 Dec 2020
Understanding Transition
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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More information on the EBRD’s practices in this regard is set out in the ESP.
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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.
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Independent Project Accountability Mechanism (IPAM)
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 Independent Project Accountability Mechanism (IPAM).
IPAM 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 the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.