US/EBRD SME Financing Facility FRW

Location:

Regional

Project number:

9925

Business sector:

Financial institutions

Notice type:

Private

Environmental category:

FI

Target board date:

27 Jun 2000

Status:

Complete

PSD disclosed:

26 May 2000

Project Description

The EBRD and the United States of America (US) will establish an SME Finance Facility to provide funding and technical assistance to banks, for on-lending to SMEs in south eastern Europe.

The main project objective is to provide financing to SMEs through financial institutions in the countries of south-eastern Europe. The facility will provide training for FIs as well as fund the EBRD’s efforts to remove legal/regulatory impediments to SME finance.

Transition Impact

The facility is expected to have a strong transition impact by focusing on countries where there are significant impediments to the development of SMEs, including poor access to finance. The TC component will focus on alleviating the impediments, including poor provision of finance by local intermediaries, while the investment component will provide necessary term funding.

The Client

Clients will be financial intermediaries (FIs) in the countries of south-eastern Europe (Albania, Bosnia and Herzegovina, Bulgaria, Croatia, FYR Macedonia and Romania). A cooperation fund will assist FIs in Kosovo. FIs will be selected on the basis of their commitment to lending to micro, small and medium-sized enterprises (SMEs) and on their financial soundness. The facility may later assist FIs in other countries.

EBRD Finance

The EBRD will provide bank-to-bank loans totaling US$ 100 million. The US will provide US$ 50 million to establish the EBRD SME Special Fund, which will provide technical cooperation as well as loans to the participating banks. Approx. US$ 25 million will be available under the facility for the 12-month period starting 1 July 2000.

Project Cost

US$ 150 million (€168 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

For details on the procurement of consultant services financed by technical cooperation funds, see Procurement opportunities.

 

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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.