Project description
and objectives:
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The ETC are a group of countries with similar transition challenges for which EBRD has designed a specific program of intervention. The ETC are Armenia, Azerbaijan, Georgia, Kyrgyz Republic, Moldova, Mongolia, Tajikistan and Uzbekistan.
The new framework will build on the positive experience of two previous frameworks by increasing the amount and variety of medium-term funding available to a greater number of non-bank MFIs in the ETCs. Under the first framework six MFIs were financed. Under the second framework a further nine new MFIs were financed as well as an additional six loans to existing clients. The pipeline for the third framework shows nine new MFIs and eight existing clients being financed. Based on the existing portfolio of 15 MFIs and nine new MFIs there will be a total of 24 institutions covered by the frameworks.
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Sub-projects:
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Transition impact:
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This framework will continue to enable the Bank increase its outreach in terms of microfinance throughout the region. By providing tailored financing products, the project will contribute to the overall development of the financial sector in the ETCs by assisting MFIs in their transition from donor grants to commercially-priced funding and will prepare the ground for their growth and ability to offer more diverse and innovative products such as micro-insurance, micro-savings etc and assist in their transformation processes. It will also provide targeted technical assistance to ensure the delivery of sustainable and efficient MSE finance. It is anticipated that the facility will act as a catalyst for attracting private capital to MFIs.
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The client:
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Existing and new partner non-bank MFIs in the Early Transition Countries.
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EBRD finance:
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USD 60 million framework for financing non bank MFIs for on-lending to MSEs. As in the earlier frameworks the third framework will provide to non-bank MFIs: senior loans of for on-lending in USD, EUR or local currency; guarantees to local banks for on-lending in local currency to selected MFIs; credit lines that allow recycling; subordinated loans; convertible loans and equity.
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Total project cost:
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USD 60 million.
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Environmental impact:
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Screened FI. Eligible non bank MFIs will carry out operations in accordance with the EBRD's “Environmental Procedures for Micro and Small Loans”. In implementing these procedures, it requires its borrowers to comply, at a minimum, with national/local health, safety, environmental, and public consultation requirements.
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Technical
cooperation:
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Previous TC has been provided to existing non bank MFI intermediaries including support for MSE and agricultural lending. Funds were provided by the ETC Fund. Each new MFI will be assessed and the most optimal TC intervention identified. Areas covered under the existing TCs were; development of management information systems, enhancement of policies and procedures; product diversification; implementation of ALM functions and best-practice financial management; IFRS implementation, strengthening of internal audit; corporate governance; deposit attraction and general institutional development particularly with respect to transformation into commercial entities.
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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Tony Myron, Operation Leader: myront@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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