The European Union (EU) and the European Bank for Reconstruction and Development (EBRD), a London-based multilateral investor, recently partnered to launch a EUR 3.8 million (USD 4.7 million) project in Mongolia geared towards small and medium-sized enterprises (SMEs). The program, “Support for SME Development in Mongolia,” is financed by the EU and implemented by EBRD and the SME Agency of Mongolia. The five-year project aims to boost the growth of Mongolian SMEs and their role in Mongolia’s economy by strengthening the capacity of the SME Agency and promoting reforms to facilitate access to finance for SMEs in the country. Other activities include developing business support and consultancy services and working with individual companies to help them improve their operational efficiency.
The EU has also given a EUR 2.5 million (USD 3.1 million) grant to EBRD’s Small Business Support program to encourage the growth of SMEs in Turkey. The program has two components, Business Advisory Services (BAS), which assists individual enterprises engage with local consultants, and the Enterprise Growth Programme (EGP), which aims to support the development and growth of SMEs through the development of new business skills at the senior management level and the introduction of best international practices. The two programs are intended to complement each other to promote good business standards and SME management skills such as planning, production, quality control and marketing.
By Charlotte Newman, Research Associate
About European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development (EBRD) is a development finance 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 more recently in Southern and Eastern Mediterranean region. 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:
EBRD Press Release: “EU and EBRD Launch New Programme for SMEs in Mongolia,” http://www.ebrd.com/english/pages/news/press/2012/120530c.shtml
EBRD Press Release: “European Union and EBRD Pledge Financial Support to Small Businesses in Turkey,” http://www.ebrd.com/english/pages/news/press/2012/120530.shtml
MicroCapital.org story, May 22, 2012, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) Launches $45m Credit Framework to Increase Household Energy Efficiency in Moldova,” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-launches-45m-credit-framework-to-increase-household-energy-efficiency-in-moldova/
MicroCapital.org story, April 20, 2012, “MICROCAPITAL BRIEF: European Bank for Reconstruction and Development (EBRD) to Loan $15m to Microfinance Institution AccessBank of Azerbaijan for Micro-, Small and Medium-Sized Enterprises (MSMEs),” https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-to-loan-15m-to-microfinance-institution-accessbank-of-azerbaijan-for-micro-small-and-medium-sized-enterprises-msmes/
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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