Ukraine SME Lending FW - Forum Bank

Location:

Ukraine

Project number:

35182

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Approval date:

27 Jun 2005

Status:

Completed

PSD disclosed:

18 Feb 2005

Project Description

The proposed project comprises an MSE credit line and an SME credit line to Forum bank, Kyiv, Ukraine. The MSE credit line will be for USD 7 million and the SME credit line for USD 10 million with a tenor of 4 and 5 years respectively. The funds will be on-lent by Forum to micro, small and medium sized enterprises, whose demand for financing is high and further growing. The MSE sub-loans will be increasingly directed to rural and agricultural MSEs. The loans to SME sector would meet the demand for investment finance from local businesses.

Transition Impact

The long-term financing received from EBRD will enable Forum to on-lend to small companies which traditionally have little or no access to long-term finance. The extension of the MSE programme to rural and agricultural regions helps easing regional and economic inequalities. Sub-loans from the MSE/SME credit lines have a positive impact on local economic situation and employment level as micro, small and medium sized companies, which represent the backbone of the economy, are enabled to grow and develop further.

The Client

Forum bank is the 12th largest bank in Ukraine with total assets of USD 362.4 mln and total capital of USD 40.1 mln at the end of September 2004. Its primary strategy is to provide a wide range of financial services to corporate and private clients. Since 2001 the bank has been a partner under the SME II Credit Line project, as well as a participating bank under the Trade Facilitation Programme.

EBRD Finance

Direct loans
MSE loan: USD 7 million
SME loan: USD 10 million

Project Cost

USD 17 million.

Environmental Impact

Forum will follow EBRD’s environmental procedures for Intermediated Financing through Local Banks and for Small and Micro Loans in relation to all sub-loans financed through the SME and MSE credit line correspondingly, including adherence to the EBRD’s Environmental Exclusion List, compliance with local/national health, safety, environmental and public consultation requirements and submission of Annual Environmental Reports to the Bank.

Technical Cooperation

In the past TC has been received from the following donors: EU, US, Germany, Canadian and Dutch governments under the SME II Credit Line project for SME and MSE programmes. The funds were used to develop lending operations, train lending staff and for institution building in participating banks, including Forum.

Under the present operation, Forum will continue to receive TC for the implementation of the MSE programme to build up further the rural and agricultural lending component including the development of loan products tailored to the needs of this target group.

Company Contact

Mr. Alexei Pavlov – Head of International Banking;
Tel: +38(0)442053559
Email: apavlov@forum.com.ua

 

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.

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