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EBRD provides Mosbusinessbank US$ 10 million small loan facility
Mosbusinessbank, a leading Russian bank, has signed a US$ 10 million loan agreement with the European Bank for Reconstruction and Development (EBRD), as part of the US$ 300 million Russia Small Business Fund set up jointly with the G-7 countries to help small and medium enterprises (SMEs) in Russia.
The proceeds of the loan will allow Mosbusinessbank to provide medium term financing, which is generally not available on the Russian market today for small companies. Guy de Selliers, Deputy Vice President of the EBRD, said: "The impact of this programme will be felt well beyond the duration of the project. Not only will staff have been trained in specific skills and techniques but basic institution building will have been undertaken more systematically".
The SME programme has already begun in Nizhniy Novgorod, Tula and Tomsk, with the participation of seven banks. Mosbusinessbank's involvement will widen the programme's reach through its branch network and develop the programme on a larger scale, especially in Siberia, the Urals and the St Petersburg region.
The Russian bank will also participate in the World Bank-EBRD Financial Institutions Development Programme. Under the training programme the EBRD will introduce credit technology, such as monitoring and information systems, which has not been widely available to local banks. This loan complements other EBRD initiatives, which include an equity fund for small businesses, the Smolensk Regional Venture fund micro-lending for very small companies.
The Russia Small Business Fund provides medium-term lending averaging US$ 50,000 equivalent to small private companies through local banks.
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