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Belarus businesses in line for US$ 30 million from EBRD
A US$ 30 million credit line, specifically designed for private small and medium companies (SMEs) in Belarus, has been established by the European Bank for Reconstruction and Development (EBRD) with the Republic of Belarus. The funds will be on-lent to the SMEs through local commercial banks which would satisfy agreed eligibility criteria.
At a signing ceremony held in Minsk, David Hexter, Director of the EBRD Financial Institutions Team, said that the credit line, the Bank's first initiative in the finance sector in Belarus: "will act as a boost for Belarus' growing private sector, providing medium and long term finance in foreign currency for investment and working capital requirements. In addition, working with a number of commercial banks will also strengthen the financial sector."
Signing for the Belarussian government, Prime Minister Mikhail Chigir said: "This is a very important development for Belarus as it provides a real impetus for the banking system and, more fundamentally, for the budding small and medium business sector."
The credit line is supplemented by technical assistance financed by TACIS with a view to providing support to participating banks in their institutional strengthening and in the project implementation. The World Bank is expected to provide a loan of a similar magnitude in parallel financing.
The candidate commercial banks already operate autonomously and with the support provided by the EBRD are expected to develop into sound financial intermediaries in a relatively short time. Details on the first participating banks should be made available in January 1995.
Belarus has strong competitive advantages being located near, and with good access to, western European markets. The country has extensive production experience in high-technology and is strong in such sectors as machine tools, metallurgy, chemicals, food and wood, industrial and scientific research which offer good export opportunities.
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