BALTIC SMALL EQUITY FUND

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The Baltics Small Equity Fund will invest in small companies in Lithuania, Latvia and Estonia, which lack reasonable access to early-stage equity capital. The Fund will be registered off-shore and will operate in the Baltics under local management, with branch offices in Vilnius, Riga and Tallinn. The Fund will invest in small to medium-sized companies (turnover between US$ 150,000 and US$ 2 million, employees between 5 and 100). It will take active minority stakes and provide the investee companies with substantial business assistance. Investments will be in the range of US$ 25,000 to US$ 400,000. US$ 5 million (ECU 4.2 million) equity investment. US$ 10.7 million (ECU 9 million). The Fund will follow the EBRD's Environmental Procedures for Investment Funds. In implementing these procedures, the Fund will assess potential environmental issues associated with its investments which are required to comply, at a minimum, with local/national health, safety, environmental and public consultation requirements. The Baltic Technical Assistance Special Fund will provide: