MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) to Loan $25m to Belvnesheconombank (BelVEB) of Belarus to Support On-lending to Micro-, Small, Medium-Sized Enterprises (MSMEs)

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral development bank, recently announced that it will extend a 5-year loan of USD 25 million to Belvnesheconombank (BelVEB), a Belarus-based commercial bank owned by Russia’s Bank for Development and Foreign Economic Affairs (Vnesheconombank), the Belarusian development ministry, and the Minsk City Territorial Fund of State Property, the Belarusian municipal development fund. BelVEB intends to use the funds to extend USD-denominated loans to micro-, small and medium-sized enterprises (MSMEs). No further information is available about the financial terms of the loan.

BelVEB operates approximately 25 branches in Belarus and reported BYR 16.1 trillion (USD 1.9 billion) in total assets, return on assets of 0.01 percent and return on equity of 0.00 percent as of fiscal year-end 2012. In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects across 34 countries.

By A’kos Szebeni, Research Associate

About Belvnesheconombank (BelVEB)

Belvnesheconombank (BelVEB) is a Belarus-based commercial bank established in 1991 that is owned by Bank for Development and Foreign Economic Affairs (Vnesheconombank), the Belarusian development ministry, and the Minsk City Territorial Fund of State Property, the Belarusian municipal development fund. BelVEB offers a range of banking, investment, trade financing and foreign exchange services to retail, commercial, wholesale and government clients. BelVEB operates approximately 25 branches in Belarus and reported BYR 16.1 trillion (USD 1.9 billion) in total assets, return on assets of 0.01 percent and return on equity of 0.00 percent as of fiscal year-end 2012.

About European Bank for Reconstruction and Development (EBRD)

The European Bank for Reconstruction and Development (EBRD) is a multilateral development finance institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries, and it is owned by 61 countries as well as the European Investment Bank and the European Union as of 2012. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe, Central Asia and North Africa. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). In 2013, EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects across 34 countries.

Sources and Additional Resources:

[1] European Bank for Reconstruction and Development (EBRD), “EBRD boosts lending for Belarusian small businesses,” http://www.ebrd.com/english/pages/news/press/2014/140128.shtml

MicroCapital, February 1, 2014, “European Bank for Reconstruction and Development (EBRD) to Loan $14m to Rosbank Leasing (RBL) of Russia for On-lending to Small and Medium-Sized Enterprises (SMEs),” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-to-loan-14m-to-rosbank-leasing-rbl-of-russia-for-on-lending-to-small-and-medium-sized-enterprises-smes/

MicroCapital, January 30, 2014, “European Bank for Reconstruction and Development (EBRD) to Loan $25m to European Fund for Southeast Europe (EFSE) for On-lending to 4k Micro- and Small Enterprises(MSEs) via Retail Lenders,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-to-loan-25m-to-european-fund-for-southeast-europe-efse-for-on-lending-to-4k-micro-and-small-enterprises-mses-via-retai-2/

MicroCapital, December 23, 2013, “European Fund for Southeast Europe (EFSE) Loans $3.4m to Agricultural Cooperative Bank of Armenia (ACBA) Leasing in Armenia, Makes $106k Equity Investment in Kreditimi Rural I Kosoves of Kosovo,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-3-4m-to-agricultural-cooperative-bank-of-armenia-acba-leasing-in-armenia-makes-106k-equity-investment-in-kreditimi-rural-i-koso/

MicroCapital, December 19, 2013, “European Fund for Southeast Europe (EFSE) Loans $63m to Belorusian-Russian Belgazprombank of Belarus, Banca Transilvania of Romania, Microfinance Institution AccessBank of Azerbaijan,” https://www.microcapital.org/microcapital-brief-european-fund-for-southeast-europe-efse-loans-63m-to-belorussian-russian-belgazprombank-of-belarus-banca-transilvania-of-romania-microfinance-institution-accessbank-of-azerbai/

MicroCapital, February 25, 2013, “Minsk Transit Bank, Belgazprombank of Belarus Access $50m Facility for SME Energy Efficiency From European Bank for Reconstruction and Development (ERBD),” https://www.microcapital.org/microcapital-brief-minsk-transit-bank-belgazprombank-of-belarus-access-50m-facility-for-sme-energy-efficiency-from-european-bank-for-reconstruction-and-development-erbd/

MicroCapital Universe Profile: Belvnesheconombank (BelVEB), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Belvnesheconombank+%28BelVEB%29

MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD), http://microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

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