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.
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.
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.
MSE loan: USD 7 million
SME loan: USD 10 million
USD 17 million.
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.
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.
Mr. Alexei Pavlov – Head of International Banking;
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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