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Belarusian Belagroprombank borrows €50m from EIB for SME development

Economy 20.11.2018 | 18:57
EIB Vice President Alexander Stubb and Belagroprombank Chairman of the Board Anatoly Lysyuk sign the papers
EIB Vice President Alexander Stubb and Belagroprombank Chairman of the Board Anatoly Lysyuk sign the papers

MINSK, 20 November (BelTA) – Belagroprombank has taken out a €50 million loan from the European Investment Bank for a period of six years with a view to developing small and medium business, BelTA learned from the bank's marketing and public relations office.

Belagroprombank and the European Investment Bank signed the relevant agreement on 20 November. According to the source, taking into account the scale of the EIB's business – the size of the assets is larger than that of the European Bank for Reconstruction and Development and is comparable to that of the International Finance Corporation – the agreement testifies to the high respect for the Belarusian banking industry and for Belagroprombank in particular on the Western and Central Europe financial market.

The size of the loan and the terms are unique. A low interest rate and loyal terms of the loan will allow the Belarusian bank to reduce the financial burden of Belarusian companies as they pay off their loans.

As the agreement was signed, Belagroprombank Chairman of the Board Anatoly Lysyuk noted that Belagroprombank enjoys the reputation as a reliable financial partner in Belarus and abroad. “In the last few years the bank did a lot to improve interaction with clients. Considerable results were achieved on the international financial market, which allow us to successfully finance projects of the clients. All of it has allowed us to prepare and implement this deal within a rather short time period,” he said.

Belagroprombank's clients now include about 40,000 companies. Of the number 90% are small and medium companies, interaction with which is not limited to payment and cash services. At present Belagroprombank finances export and import operations of its clients in addition to offering other products.

EIB money will be made available to small and medium private companies employing up to 250 people with the state share in their charter capital of at most 25% (up to 50% in some exceptions). The interest rates will vary from deal to deal but in any case Belagroprombank's offers will be very attractive in comparison with similar programs available on the Belarusian market, added the chairman of the board. “We intend to offer loans to our clients for up to six years, with the interest rate of 3% per annum,” said Anatoly Lysyuk.

The money can be spent on buying, renewing or expanding physical assets, on investing in intangible assets, or as medium and long-term floating assets. The country of origin of the goods does not matter. Targeted use of the financial resources will be monitored by Belagroprombank and the EIB.

Founded in 1991, Belagroprombank is one of the country's largest banks. The principal shareholder (91.3%) is the State Property Committee of the Republic of Belarus.

The European Investment Bank is the European Union's bank that provides long-term finance and expertise for sustainable investment projects in Europe and outside its borders. The bank is owned by 28 European Union member states. The bank is the world's largest multilateral borrower and lender. The EIB is headquartered in Luxembourg. Its network includes more than 40 branch offices.

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