FMO opens $5m credit line to Belarus’ Bank for Small Business

MINSK, 4 August (BelTA) - The Netherlands Development Finance Company (FMO) has opened a $5 million credit line to the Belarusian Bank for Small Business (BBSB), BelTA learnt from the bank’s marketing department.

The agreement to open a credit line was signed between the Belarusian Bank for Small Business and FMO in Minsk not long ago. The main goal is to develop the programme of micro-lending of the small and medium-sized business and acquisition of necessary instruments for bank’s infrastructure development. The credit line is opened for five years with a two-year delay in payment.

On 17 December 2008 the European Bank for Reconstruction and Development (EBRD) committed $5 million to the Belarusian Bank for Small Business to develop a microfinance programme.

From October 2008 till July 2009 the BBSB issued more than 580 loans worth of $6.6 million. The bank lending to the private sector of the Belarusian economy has been increasing. In July the bank granted 84 loans at the total amount of $1.2 million. Of them 32 loans were given to the small business in Grodno and the Grodno oblast.

The Belarusian Bank for Small Business is Belarus’ first bank providing its services to sole traders, small and medium-sized business. The Bank’s shareholders are the European Bank for Reconstruction and Development, the International Finance Corporation Commerce, the Netherlands Development Finance Company, SwedFund (Sweden), Bank AG (Germany), Commerzbank (Germany), Kfw Bank (Germany), ShoreBank International (the USA), ShoreCap International (the USA),. The bank has opened so far two offices in Minsk and one in Grodno. Three more offices will be opened this year as well.

The Netherlands Development Finance Company (FMO) is one of the co-founders of the Belarusian Bank for Small Business. FMO invests risk capital in companies and financial institutions in developing countries. The Netherlands government holds a controlling stake (51%) in the bank. FMO's finance portfolio includes projects in 71 countries.