Belvnesheconombank - MSME credit facility

Location:

Belarus

Project number:

45555

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

10 Dec 2013

Status:

Repaying

PSD disclosed:

07 Nov 2013

Translated version of this PSD: Russian

Project Description

The EBRD is considering extending a loan of up to USD 30 million to BelVEB to provide medium- and long-term financing to its SME clients across the country. The loan will facilitate sustained lending to the underserved private SME sector in Belarus, which suffered significantly during the 2011 crisis. Consequently, the project will foster the development of this crucial part of the economy.

Transition Impact

The project will support the expansion of the private SME segment of the economy by increasing the availability of funding, in particular outside of Minsk. Furthermore, the project aims to promote improvements in standards of business conduct by requiring BelVEB to take special precautions regarding sub-borrowers taking-on foreign currency risk.

The Client

BelVEB is a 97%-owned Belarusian subsidiary of VEB, a Russian state bank. It is a universal commercial bank, ranked 5th by total assets (USD 2.0 billion) and holding a 5.3% market share.

EBRD Finance

An unsecured credit line of up to USD 30 million for on-lending to eligible private SME sub-borrowers.

Project Cost

Up to USD 30 million.

Environmental Impact

Categorised FI. BelVEB is an existing client of the EBRD, is compliant with EBRD Performance Requirements (PR) 2 and 9 and has submitted satisfactory Annual Environmental and Social Reports (AESR) to the Bank under existing exposures. Sub-loans will be required to comply with national environmental, health, safety and labour requirements. BelVEB will be required to continue to comply with the PRs, implement the EBRD’s Environmental and Social Procedures for Corporate Lending and regularly submit AESRs to the Bank.

Technical Cooperation

None.

Company Contact

Andrey Korzun
Department for Business Development

Phone +37517 218 66 06
E-mail: korzun_an@bveb.minsk.by

 

Business opportunities

For business opportunities or procurement, contact the client company.

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