The European Bank for Reconstruction and Development (EBRD), a UK-based multilateral institution, recently launched a facility in Belarus to provide a total of up to USD 50 million in loans intended to fund investments in energy efficiency and renewable energy. Proceeds of the fund, titled the Belarus Sustainable Energy Finance Facility (BelSEFF), will be lent to small and medium-sized enterprises (SMEs) that meet EBRD lending requirements via local banks.
As of February, the Belarussian banks Minsk Transit Bank (MTB) and Belgazprombank have received funding from the facility in the form of an energy efficiency credit line of USD 4 million and an energy efficiency loan of USD 13 million, respectively.
As of December 31, 2011, Belgazprombank reported total assets of BYR 7.8 trillion (USD 932 million) and served a total of 16,300 clients. Minsk Transit Bank reported total assets of BYR 1.8 trillion (USD 212 million) as of the same date.
This project is part of the Sustainable Energy Initiative launched by EBRD in 2006 that seeks to address issues of energy efficiency and climate change by promoting sustainable energy investments. In 2011, EBRD invested EUR 194 million (USD 251 million) in projects in Belarus.
By Nicole Boyd, Research Associate
About Minsk Transit Bank
Founded in 1994, Minsk Transit Bank 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, Minsk Transit Bank reported total assets of BYR 1.8 trillion (USD 212 million).
About Belorussian-Russian Belgazprombank Joint Stock
The Belorussian-Russian Belgazprombank Joint Stock Company was established in November 1997. The bank is involved in the settlements of gas supplies to the Republic of Belarus as well as in settlements for the transit of Russian gas to Europe. As of December 31, 2011, the Bank reported total assets of BYR 7.8 trillion (USD 932 million) and served a total of 16,300 clients.
About European Bank for Reconstruction and Development (EBRD)
The European Bank for Reconstruction and Development (EBRD) is a multilateral institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. 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 2011, EBRD disbursed a total of EUR 6.7 billion (USD 8.3 billion).
Sources and Additional Resources:
European Bank for Reconstruction and Development (EBRD). “EBRD Offers Belarus Firms Energy Efficiency Funding,” http://www.ebrd.com/pages/news/press/2013/130219a.shtml
MicroCapital. February 1, 2013, “MICROCAPITAL BRIEF: Belarus Drafts Decree Regulating Microfinance Industry,” https://www.microcapital.org/microcapital-brief-belarus-drafts-decree-regulating-microfinance-industry/
MicroCapital. November 21, 2012, “MICROCAPITAL BRIEF: Part of $38b Commitment From European Investment Bank, World Bank, European Bank For Reconstruction and Development To Support SMEs,” https://www.microcapital.org/microcapital-brief-part-of-38b-commitment-from-european-investment-bank-world-bank-european-bank-for-reconstruction-and-development-to-support-smes/
MicroCapital. October 28, 2011, “MICROCAPITAL BRIEF: EU Pledges Additional €5m to EBRD’s Small Business Programmes in Eastern Europe,” https://www.microcapital.org/microcapital-brief-eu-pledges-additional-e5m-to-ebrds-small-business-programmes-in-eastern-europe/
MicroCapital Universe Profile: Minsk Transit Bank https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Minsk+Transit+Bank
MicroCapital Universe Profile: Belorussian-Russian Belgazprombank Joint Stock https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Belorussian-Russian+Belgazprombank+Joint+Stock
MicroCapital Universe Profile: European Bank for Reconstruction and Development (EBRD) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
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