BELARUS SME/MSE FRAMEWORK

Location:

Belarus

Project number:

35582

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

30 Nov 2004

Status:

Completed

PSD disclosed:

08 Oct 2004

Project Description

The proposed Framework to the amount of US$ 25.0 million consists of senior loans to commercial banks in the Republic of Belarus. Under this Framework, loans will be extended directly to the participating local banks which will in turn on-lend these funds to private Micro, Small and Medium-sized Enterprises.
Initially two banks will be considered for participation in the Framework: Belgazprombank (BGPB) and Prior Bank (Prior). Additional private banks will be included in the Framework at a later stage. The Framework will enable EBRD to meet the growing demand for finance from Micro, Small and Medium-sized Enterprises across Belarus and to further strengthen institution building in the Belarusian banking sector.

Transition Impact

The Facility is expected to have an excellent transition impact as it will provide support to and contribute to the growth of the private sector banks. By working with banks active throughout the country, the project will support the development of a more broadly-based banking system and allow for a deeper outreach to Micro, Small and Medium-sized Enterprises throughout the country.
The Framework will provide swift access to much needed financing for Micro, Small and Medium-sized Enterprises on a commercial and sustainable basis.  The project will also demonstrate to other local banks that lending to the Micro, Small and Medium-sized Enterprises sector is commercially viable and will, therefore, encourage them to cater for this market niche and improve the overall level of financial services provided to Belarusian entrepreneurs.  Policy dialogue with the Government of Belarus on private sector development issues will continue.

The Client

The two potential clients under the Frameworks are:
  • Joint Belarusian-Russian Open Joint-Stock Company “Belgazprombank” is a medium-sized commercial bank, the eighth largest commercial bank of Belarus by the size of its equity and assets base. The Bank is owned by Gazprom (33.91%), Gazprombank (33.91%), Belarusian Ministry of Economy (8.63%) and Beltransgaz (23.5%). 
     
  • Prior is a Joint Stock Company owned by Raiffeisen Zentralbank Österreich AG (“RZB”) through its wholly owned subsidiary Raiffeisen International AG (“RI”) (61.3%), EBRD (13.5%) and others (25.2% with the individual stakes of under 3%). Prior is the third largest bank in Belarus in terms of equity (8.8% market share), assets (10.9%) and loan portfolio (10.5%), as of end-2003 and the largest private bank, as well as the only subsidiary of a western bank in Belarus.

EBRD Finance

The Framework will consist of credit lines in the total amount of US$ 25 million, of which Belgazprombank and Prior Bank will receive US$ 6 million and US$ 10 million respectively.  

Project Cost

US$ 25 million.

Environmental Impact

The project will be carried out in accordance with EBRD’s Environmental Procedures for Intermediate Financing through Local Bank and Environmental Procedures for Small and Micro Loans.
Both Priorbank and Belgazprombank demonstrated full compliance with EBRD’s environmental requirements for financial institutions within the existing sovereign guaranteed Belarus Credit Line for Small and Medium-Sized Enterprises.  

Technical Cooperation

It is envisaged that the proposed Framework will be accompanied by technical co-operation for  Micro and Small-Enterprises component that is currently estimated at € 1.0 million for the next 24 months.  
To date, US$ 150,000 has been preliminary approved by USAID with other sources of funding being explored as well.  Eligibility for TC will be prioritised in favour of smaller local banks.  

Company Contact

Belgazprombank
Mrs Avramenko Tatiana, Head of MSE/SME unit 
60/2, Pritytskiy str., 
Minsk, 
Republic of Belarus, 
220121
E-mail: Avramenk@bgpb.minsk.by 

Tel: +375 17 2594157
Website: www.belgazprombank.by
Prior Bank
Mrs Shishenko Elena, Director of Structured and Project Finance division 
31-A, Khoruzhei str., 
Minsk, 
Republic of Belarus, 
220002
E-mail: Elena.Shishenko@Priorbank..by
Tel: +375 17 2173447
Website: www.priorbank.by
 

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP 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. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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 how to submit a Request for review through our confidential online form, by email, mail or telephone. IPAM is available to discuss your concerns and answer any questions you may have about the submission or handling of Requests, which follow the Project Accountability Policy and Guidance. Requestors’ identities may be kept confidential, upon request.

Share this page: