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Bank Agio first to lend under $200m Ukraine SME facility
The EBRD is extending a $10 million line of credit for SME lending to Bank
Agio, which becomes the first Ukrainian bank to lend under a new $200 million
framework for financing private-sector micro, small and medium enterprises.
The framework will be put to work through credit lines to local commercial
banks, without sovereign guarantee and without the National Bank’s
participation.
Agio, owned by Skandinaviska Enskilda Banken (SEB) of Sweden, became an EBRD
partner in 1995 and has been one of the best performing banks under the SME
credit line programme.
The new credit line will not only enhance Agio’s position in the SME market by
providing it with long-term financing, but it should also have a wider effect
on small-business lending, given that this sector is rather underfinanced in
Ukraine, said Jean Marc Peterschmitt, EBRD Director of Bank Debt.
“The new credit agreement with the EBRD, which will simplify access to
financing, is an important step in strengthening Agio’s strategy aimed at SME
development and the provision of competitive long-term financing,” said Agio
Chairman of Board Stanislav Arzhevitin.
Bank Agio and its clients have actively participated in the EBRD’s SME
Business Project Competitions, designed to improve the management and
strategic planning skills of local companies and to promote small and
medium-sized business lending in Ukraine. In 2004 Agio’s client Exar, one of
Kiev’s best and longest-standing photo labs, won this competition.
Since the launch of the SME credit line programme in 1994, the EBRD has
financed 235 SMEs for $205 million and more than 47,000 micro enterprises for
$304 million of aggregate financing.
The Bank’s cumulative investments in Ukraine stand at €1.6 billion through 65
projects.
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