Project description
and objectives:
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EU/EBRD MSME (Micro, small and medium sized Enterprises) preparatory action
In support of MSMEs in the new financial environment following the EU
accession, a Preparatory Action programme (the Action) supported by the
European Commission (EC) has been established. The Action aims to provide
medium and long-term financing from the EBRD combined with Technical
Cooperation funded by the EC. This combined service will be offered to
participating banks and their leasing subsidiaries that intend to develop
their MSME finance. A particular focus is put on micro financing. The Action
is open to financial intermediaries in the New Member States (Czech Republic,
Estonia, Hungary, Latvia, Lithuania, Poland, Slovak Republic and Slovenia).
The main objectives of the Action are to:
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strengthen and deepen the MSME credit markets and in particular to micro
enterprises in the New Member States.
-
build financial intermediaries’ ability to extend financing to MSMEs (and
particularly micro enterprises) on a sustainable basis;
-
provide training to financial intermediaries in order to broaden their
capacity to assess and monitor their MSME portfolio;
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Sub-projects:
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- EU/EBRD PA - Istrobanka
- EU/EBRD PA - BWE (Bank Wspolpracy Europejskiej)
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Transition impact:
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Transition impact will be achieved by:
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Improving depth and efficiency of financial intermediation and broadening the
diversity of financial products offered to MSMEs in the New Member States.
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Contributing to institution building in the participating financial
intermediaries.
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The client:
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Financing will be channelled through participating banks and/or leasing
subsidiaries of banks in the eligible countries that can demonstrate a
satisfactory financial viability, a capable management team and commitment to
small and medium-sized enterprises in their lending/leasing policy. Going
forward, the framework may be opened to independent leasing companies and
micro finance institutions.
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EBRD finance:
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EUR 40 million senior debt and/or risk-sharing through framework operations.
The proposed EBRD financing will consist of:
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lines of credit to financial intermediaries for financing MSMEs and/or
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risk-sharing on MSME portfolios of financial intermediaries.
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Total project cost:
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EUR 40 million.
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Environmental impact:
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Financial intermediaries funded by EBRD under the Action must apply EBRD’s
Environmental Procedures for Small and Micro Loans or those for Leasing
Companies (as appropriate) to all sub-loans and leases supported through the
Action. MSME clients are required to comply with all applicable domestic
health, safety, employment, environmental and public information/consultation
requirements. The need for financial intermediaries to monitor their clients’
ability to meet current and forthcoming regulatory requirements over the
course of the loan will be emphasised in the TC programme. When financing
start-up enterprises through the Action, the financial intermediaries will
make sure that they are designed to meet national environmental requirements
from the outset.
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Technical
cooperation:
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Up to EUR 4 million, to be funded by the EC.
The technical cooperation funds will be used to contribute to institution
building through enhancement and streamlining of MSME lending/leasing
procedures, training of staff, strengthening of Management Information Systems
and marketing strategy, aiming to enable the participating institutions to
build long-term capacity to provide financing to MSMEs on a sustainable basis.
For consultant opportunities for projects financed by technical cooperation
funds, visit procurement
of consultants.
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Company contact:
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n/a
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EBRD contact:
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Teresa Godwin-Coombs, Operation Leader: godwint@ebrd.com
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Business opportunities:
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For business opportunities or procurement, contact the client company.
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General enquiries:
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EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168; Fax: +44 20 7338 7380
Email: projectenquiries@ebrd.com
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