Project description
and objectives:
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The proposed project is to establish a dedicated greenfield microfinance bank
in Belarus during 2007. Potential co-financiers include EBRD, FMO, IFC and
other IFIs. The project will support the development of private micro and
small enterprises (‘MSEs’) in Belarus by providing financial services on a
sustainable basis particularly in the regions outside of the capital.
The proposed transaction comprises a EUR 2.5 million equity investment and a
senior loan of up to EUR 10 million for on-lending to micro and small
enterprises.
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Transition impact:
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The project is expected to have a high transition impact by contributing to
the development of the MSE sector in Belarus and further demonstrating the
viability of the MSE lending operations to other local banks. Financing micro
and small-size enterprises (MSEs) is critical to the development of free
entrepreneurship practices as this contributes to economic and political
stability through sustained employment opportunities. MFBB will bridge the gap
between the demand and supply for MSE finance by providing permanent and
reliable access to MSEs. It will also set new standards in good corporate
governance, promote competition in the microfinance sector and foster
innovation and better standards in customer service and conduct of business
which will have a positive effect on other market participants and result in
better services to the final beneficiaries.
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The client:
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Once established, MFBB will seek to become a universal commercial bank
providing wide range of products to its target clients. It will strive to
become a bank with a strong focus on MSE lending, including in the regions
outside of the capital. MFBB will be managed by the Consultant who will be
selected jointly by the potential shareholders via an international
competitive tender.
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EBRD finance:
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Total project cost:
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Up to EUR 35 million.
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Environmental impact:
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MFBB will nominate a senior member of the management responsible for
environmental issues, introduce EBRD Environmental Procedures for Local Banks
into its credit appraisal procedures, implement them and train its credit
officers on environmental and social risk management. The bank and all of its
activities and operations shall also comply with Belarusian national
environmental, health, safety and labour regulations and standards as well as
with the Core Conventions of the International Labour Organisation related to
child and forced labour and discrimination at work. MFBB shall submit to EBRD
Annual Environmental Report in a format and contents satisfactory to the bank.
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Technical
cooperation:
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Technical co-operation funds are sought to contribute to the bank’s
institution building, including the training of local bank staff, and to
support the acceleration of its regional expansion through the building up of
an extensive network of branches and lending outlets. The governments of
Austria, Japan and Norway have committed to EUR 1 million to support the
establishment of MFBB during the first year of operations.
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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Renata Iksar, Operation Leader: iksarr@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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