EU/EBRD Phase I - Ext. - SME Finance Facility FRW

Location:

Regional

Project number:

9924

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

04 Apr 2000

Status:

Complete

PSD disclosed:

29 Mar 1999

Project Description

Extension to the EBRD-EU regional finance facility for ten EU accession countries (Bulgaria, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovak Republic and Slovenia). The facility will provide term loans and equity finance to financial intermediaries to facilitate the expansion of lending to small and medium-sized enterprises (SMEs).

The project aims to support the growth and development of private sector SMEs by creating access to term loans or equity. It will also establish new business financing practices in financial intermediaries so that these acquire more experience in dealing with SMEs and create a revenue stream.

Transition Impact

Medium-term funds to SMEs are only available in rare cases; the weakness of the financial sector is even more conspicuous at the level of very small enterprises. The project will help to create employment opportunities in the private sector.

The Client

Financing will be channelled through intermediaries in ten accession countries that can demonstrate a satisfactory level of financial viability, a capable management team and commitment to small and medium-sized enterprises (SMEs) in their lending/investment policy.

EBRD Finance

The EBRD is allocating an additional EUR 75 million to the EUR 50 million already provided for the Loan Window; the Bank is also providing EUR 25 million to an Equity Window.

Project Cost

EUR 200 million, including EUR 50 million contributed by the European Union. Maximum sub-loan amounts shall be up to EUR 125,000 (exceptionally, EUR 250,000) and maximum amounts for equity participations shall be EUR 1 million.

Environmental Impact

Financial institutions included in the facility will be required to apply the EBRD’s Environmental Procedures for Financial Intermediaries to all loans and investments supported through the facility. In implementing these procedures, the financial intermediaries will assess potential environmental issues associated with client SMEs, which are required to comply, at a minimum, with local/national health, safety, environmental and public consultation requirements.

Technical Cooperation

Up to EUR 12.5 million. The Technical cooperation funds (TCs) will be used to contribute to institution building within the financial sector of the 10 accession countries by providing training and technical assistance to banks in order to build long-term capability to provide SMEs with access to financing.

 

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

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