EBRD deepens cooperation with BNB Bank
European Bank for Reconstruction and Development (EBRD) includes the Belarusian People’s Bank (BNB Bank) in a special funding program for risk-sharing loans granted to small and medium-sized companies. Thus,BNB-Bank becomes the first Belarusian financial institution to join the RSF. Under the RSF agreement, the EBRD and BNB-Bank will each provide up to US$ 10 million to share in the risk of loans to be provided by BNB-Bank to Belarusian companies. It is expected that the EBRD will share up to 50 per cent of the risk on individual loans, allowing BNB-Bank to expand their lending to a greater number of companies, most of which are smaller businesses and would not otherwise have access to EBRD financing.
The privately-owned BNB-Bank has been a client of the EBRD since 2011 and has established itself as a growing force in SME lending in Belarus. BNB-Bank has to date successfully participated in a variety of EBRD financial programmes in Belarus, ranging from credit lines to small businesses, a syndicated loan facility and the Trade Facilitation Programme (TFP).
The participation in the RSF will allow BNB-Bank to expand its relationship with the EBRD and acquire new banking techniques and know-how to carry out efficient SME financing activity across Belarus. It will also help BNB-Bank diversify its funding sources and improve the maturity profile of its balance sheet, as well as to successfully compete with larger players in the local banking sector.
The EBRD is one of the largest investors in Belarus.
EBRD activity in Belarus to date December, 31 2014
No of projects
Cumulative EBRD disbursements
Cumulative EBRD investment
Private sector share of cumulative EBRD investment