The European Bank for Reconstruction and Development (EBRD) and Priorbank have signed the first deal to provide financing to a Belarusian company under the EBRD's Risk Sharing Facility (RSF).
Uniflex, a manufacturer of packaging and labels, has become the first company to get a loan from Priorbank under this program.
EBRD signed an agreement to extend its RSF of $11 million to Priorbank in November 2015. The RSF allows Priorbank to share risk in loans provided to domestic corporate clients, including small and medium-sized companies, and expand its lending to a greater number of companies across the country. Such partnership will generate financial products that businesses can use for upgrading the production facilities, developing international trade and entering new markets.
Head of the EBRD Office in Belarus Alexander Pivovarsky stressed the importance of the deal. “We are happy that we have managed to launch such a project in Belarus,” he noted.
“We had no problem with financing the company from our own funds. Still, it is important that we have created another channel for drawing foreign investment to the country,” Priorbank Board Deputy Chairman Vadim Matyushkin said.
He noted that to provide support to businesses is a priority task for Belarus' financial sector in general and Priorbank in particular. Attracting foreign resources through global financing programs is one of the most effective methods that has already gained traction in Europe and the United States. This method allows for creating favorable conditions for small and medium-sized businesses in Belarus. “We will be working hard to make progress in this direction,” Vadim Matyushkin promised.
Source: BelTA