Belinvestbank MSME and TFP pre-privatisation financing

complete

The EBRD is providing Micro Small and Medium Enterprise (MSME) credit line of up to € 20 million and Trade Facilitation Programme (TFP) facility of up to €30 million to Belinvestbank (BIB). The project is undertaken within a broader effort aimed at facilitating the preparation of BIB for privatisation by attracting a private strategic investor into the bank. This effort will include several stages of financing and Technical Cooperation over the course of the forthcoming two to three years. The proposed MSME credit line and TFP facility are the first steps in this process. The subsequent stages of broader pre-privatisation work are part of ongoing effort between the BIB, Belarus authorities and the EBRD.  In addition, the project will enhance Belarus small and medium private enterprise access to longer term credit resources and facilitate international trade involving Belarus companies. Expanding the scope and quality of product lines offered by BIB to private sector and other commercially operating companies in Belarus will expand the use of commercial instruments necessary for supporting businesses in presently challenging environment. The project will also facilitate skills transfer to BIB MSME lending and TFP operations. Ability of BIB to expand its work with private and other commercially operating businesses will enhance the value of BIB to potential investors and, combined with other planned measures to be implemented with subsequent projects, will improve the potential for attracting financial and strategic investors into BIB, and more broadly in Belarus. The expected transition impact rating is ‘strong’. BIB is a state-owned universal commercial bank operating in Belarus and focused on providing financing and other financial services to domestic clients. The bank is among five largest banks in the country and its client base includes a mixture of large exporting enterprises, medium and small size companies as well as individual clients. MSME credit line of up to € 20 million. TFP facility with a limit of up to €30 million. Up to €50 million. Categorised FI In line with PR9, the bank will need to adhere to the EBRD’s Environmental and Social Exclusion and Referral Lists. BIB will also submit annual environmental and social reports to the EBRD, including reporting on sub-projects. Sub-borrowers financed through credit line under the MSME facility, as usual for this type of project, will be required to comply with national environmental, health, safety and labour (EHSL) requirements. None at this stage. A Technical Cooperation program will be agreed and implemented in stages in parallel with this and subsequent financing operations. Andrei Dzhumkov, Head of International Division Belinvestbank 29, Masherova pr-t, 220002, Minsk, Belarus  phone. +375 17 289 28 99 e-mail: dzhumkov@belinvestbank.by