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EBRD and NMB Bank establish ECU 81.7 million Agency Line
The European Bank for Reconstruction and Development (EBRD) today announced with NMB Bank Postbank Group NV (NMB Bank) of the Netherlands the creation of a Central Europe "Agency Line" to finance small and medium size enterprises in Eastern and Central Europe.
The size of the Agency Line will be ECU 81.7 million (US$ 100 million) equivalent of which the EBRD will provide no more than US$ 40 million and NMB Bank or its affiliates at least US$ 60 million. Loans will range from US$ 100,000 to a maximum of US$ 10 million, with NMB Bank taking a stake of not less than 60 percent of the amount and the EBRD not more than 40 percent. The EBRD will be the lender of record.
NMB Bank's local branches will act as the Bank's local agents selecting, appraising, executing and supervising the local loans, in accordance with guidelines agreed by the EBRD.
The Agency Line will lend primarily to small and medium size private enterprises, new enterprises and enterprises in the process of privatisation. Project sponsors or enterprises will have to provide a minimum of 25 percent of the project cost. Projects will be screened according to criteria specified by the EBRD.
The first lending under the Agency Line is expected in Poland where NMB Bank has had a local presence for more than a year in the form of a consultancy joint venture with Bank Handlowy.
It is intended that the facility should give small and medium size enterprises access to the services of an experienced international commercial bank, attract additional international credit resources and assist in the creation of employment.
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