MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Commits $5m to Belarusian Minsk Transit Bank (MTB) for Onlending to Micro-, Small, Medium-Sized Enterprises (MSMEs)

The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral financial institution that finances companies in countries that are transitioning to open market economies, recently agreed to commit a local-currency,  senior loan worth up to USD 5 million to Minsk Transit Bank (MTB), a government-backed bank in Belarus. 

The purpose of the loan is to allow MTB to increase its lending portfolio to micro-, small and medium-sized enterprises (MSMEs) while lessening foreign exchange risk for both MTB and its clients. Mr Francis Delaey, EBRD’s Head of Office in Belarus, stated that “with this project we are not only providing loans with longer maturities to domestic small businesses but also promoting lending in local currency, which is another important objective for us in Belarus.”

As of the most recent data given on December 31, 2011, MTB reported total assets of BYR 1.8 trillion (USD 212 million). As of September 1, 2014, EBRD has committed USD 1.81 billion across 66 projects in Belarus. EBRD invested USD 11.4 billion in 392 projects across 34 countries in 2013.

By Emily Teleposky, Research Associate

About European Bank for Reconstruction and Development (EBRD):
The European Bank for Reconstruction and Development (EBRD) is a multilateral financial institution headquartered in London, England. The bank began operations in 1991 upon the agreement of 40 countries, and it is owned by 64 countries as well as the European Investment Bank and the European Union as of 2014. It aims to finance operations that are both commercially viable and assist development in Central Asia, Eastern Europe 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). With total assets of EUR 49 billion (USD 65 billion), EBRD invested EUR 8.5 billion (USD 11.4 billion) in 392 projects in 34 countries during 2013.

About Minsk Transit Bank (MTB):
Founded in 1994, Minsk Transit Bank (MTB) is a commercial bank that offers financial services for individual and corporate customers in the Belarus Republic. It also registers rights for governmental and corporate security offerings. As of December 31, 2011, MTB reported total assets of BYR 1.8 trillion (USD 212 million).

Additional Sources and Resources:

[1] EBRD Commits New Funds to Support Small Businesses in Belarus http://www.ebrd.com/pages/news/press/2014/140911b.shtml

[2] EBRD: What We Do http://www.ebrd.com/pages/about/what.shtml

[3] MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Considers Syndicating $25m Investment in Minsk Transit Bank (MTB) of Belarus for On-Lending to Micro-, Small, Medium-sized Enterprises (MSMEs), May 18, 2014, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-considers-syndicating-25m-investment-in-minsk-transit-bank-mtb-of-belarus-for-on-lending-to-micro-small-medium-sized-e/

[4] 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), February 2, 2014, https://www.microcapital.org/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-msm/

[5] MICROCAPITAL BRIEF: The European Bank for Reconstruction and Development (EBRD) Lends $10M from Its Microfinance Program to Minsk Transit Bank (MTB) of Belarus, July 3, 2009, https://www.microcapital.org/microfinance-story-the-european-bank-for-reconstruction-and-development-ebrd-lends-10m-from-its-microfinance-program-to-minsk-transit-bank-mtb-of-belarus/

[6] MicroCapital Universe Profile: European Bank for Reconstruction and Development, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29

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