The Belarusian bank OAO Belinvestbank received EUR 50 million as a subordinated loan from the European Bank for Reconstruction and Development (EBRD) on December 18, the Belinvestbank press service declared.
The money was transferred as part of the arrangements made when EBRD President Suma Chakrabarti visited Belarus in September.
It is a unique deal for the Belarusian financial market. It was facilitated by the Finance Ministry, with a minimal interest rate secured as a result. The subordinated loan infused the Belinvestbank capital, bolstering the bank’s investment appeal and the level of trust on the part of clients and partners. There are plans to spend the money on financing micro, small, and medium-sized private companies. The EBRD loan is the best indicator of the effectiveness of the measures the bank management and the Belarusian government take to transform the financial institution. The EBRD loan also represents the highest criterion of trust on the part of European partners.
In September Belarus President Alexander Lukashenko signed the decree on borrowing EUR 50 million as an external government loan from the EBRD for a period of six years with a view to bolstering Belinvestbank’s capital. The relevant arrangements were made as a delegation of the European Bank for Reconstruction and Development led by EBRD President Suma Chakrabarti visited Belarus on September 13-14. Members of the delegation met with the Belinvestbank management. Directions for the bank’s corporate development and future cooperation in the course of implementing joint projects were high on the agenda. Close attention was paid to improving the bank’s financial reliability by providing a subordinated loan. (BelTA/Business World Magazine)
