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EBRD makes first equity investment in Belarussian bank
To support the development of private sector banks in Belarus, the European Bank for Reconstruction and Development (EBRD) has agreed to make an equity investment in Priorbank, the fifth-largest bank in Belarus. The ECU 2.75 million investment represents 27 per cent of Priorbank's authorised and paid-in share capital.
"The EBRD's equity investment in Priorbank is the first bank-to-bank private sector transaction in Belarus and is a logical follow-up to the EBRD-financed small and medium-sized enterprises credit line currently in operation," said David Hexter, Deputy Vice-President of the EBRD.
Mr Hexter continued: "This EBRD investment is crucial not only for Priorbank but for the future of the Belarussian banking sector as a whole. The investment will have a strong impact in promoting an independent banking sector operating on commercial principles. By enhancing Priorbank's capital base, the EBRD's investment will allow the bank to increase its lending to private sector enterprises, thus accelerating the transition process in the country."
The investment will enhance Priorbank's international reputation and enable it to attract reputable foreign investors into its share capital. To date, these steps have been hampered by the slow pace of economic reform in Belarus.
Priorbank is widely regarded, domestically and internationally, as a premier Belarussian commercial bank that is largely autonomous from the Government.
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