Kreditprom SME credit line

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The proposed project is medium term financing to Joint-Stock Bank Kreditprom (“Kreditprom”) to support its lending to private micro, small and medium-size companies. The project consists of a USD 10 million SME credit line for on-lending to local SMEs and a USD 7 million MSE credit line for on-lending to local MSEs. The funds will be on-lent 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 Kreditprom 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 to ease 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. Kreditprom is a medium-size commercial bank with total assets of USD 300 million and equity of USD 60 million at the end of June 2005. EBRD financing includes: USD 17 million. Screened FI. Kreditprom will be required to comply with EBRD’s Environmental Procedures for Small and Micro Loans and for Intermediated Financing through Local Banks which require adherence to the Bank’s Environmental Exclusion and Referral List, compliance with the applicable national environmental, health and safety requirements and submission of an annual environmental report to the Bank. In the past TC has been received from the following donors: EU, US, Germany 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 Kreditprom. Under the present operation, Kreditprom will continue to receive TC for the implementation of the MSE programme to further build up the rural and agricultural lending component including the development of loan products tailored to the needs of this target group. Mr. Vassiliy Perepelitsa, Head of the International Projects Department Phone: +380-44- 490 2776 Fax: +380-44- 284 9339 E-mail: perepelitsa@kreditprombank.com