The European Bank for Reconstruction and Development (EBRD), a multilateral finance institution based in London, is providing loans to banks in Serbia and Moldova in an effort to increase access to finance for micro-, small and medium-sized enterprises (MSMEs).
In Moldova, EBRD is increasing the availability of local-currency financing to private businesses via a synthetic loan worth USD 5 million to ProCredit Bank Moldova, a bank that provides financing to MSMEs [1]. Under the synthetic loan structure, ProCredit Bank Moldova will repay the loan in Moldovan lei rather than incurring foreign exchange risk. ProCredit Bank Moldova has a network of 23 representative offices throughout the country and as of December 31, 2009, has USD 47 million in assets. ProCredit Bank Moldova is controlled by ProCredit Holding of Germany, which consists of twenty-one banks operating in transition economies and developing countries in Eastern Europe, Latin America and Africa. As of 2009, ProCredit Holding reported assets of EUR 4.9 billion (equivalent to USD 6 billion) and a gross loan portfolio of EUR 3.3 billion (equivalent to USD 4 billion). Since it began operations in Moldova in 1994, EBRD has committed EUR 460 million (USD 644 million) to various sectors of the economy, mobilizing additional investment of EUR 320 million (USD 447 million).
In Serbia, EBRD is providing UniCredit Bank Serbia, a member of Italy’s UniCredit Group, with a EUR 79 million (USD 110 million) package of support for Serbian companies to modernize and upgrade their production processes [2]. The package includes a EUR 60 million (USD 84 million) credit line for small and medium-sized enterprises (SMEs) [2]. As of 2009, UniCredit Serbia has an operating income of EUR 76.5 million (USD 107 million), return on equity before tax of 14.2 percent and loan portfolio of EUR 845 million (USD 1.2 billion). Since it began operations in Serbia, EBRD has invested around EUR 2.5 billion (USD 3.5 billion) in 150 projects with a total value of some EUR 6 billion (USD 8.4 billion) [2].
By: Alexandra Pattee, Research Associate
About European Bank for Reconstruction and Development (EBRD): The European Bank for Reconstruction and Development (EBRD) is a development finance institution headquartered in London. The bank began operations in 1991 upon the agreement of 40 countries and is now owned by 61 countries as well as the European Investment Bank and the European Union. The bank invests primarily in private sector clients, seeking to promote entrepreneurship and foster transition towards open and democratic market economies. It aims to finance operations that are both commercially viable and assist development in 29 countries in Eastern Europe and Central Asia. It does this by providing loans, debt securities, equity investments, guarantees and technical assistance to micro- and small businesses via commercial banks and non-bank microfinance institutions (MFIs). Operating assets for fiscal 2009 were EUR 6.1 billion (USD 8 billion). With 112 microfinance investments, the bank has allocated EUR 439.5 million (USD 2 billion) to microfinance.
About ProCredit Bank Moldova: ProCredit Bank Moldova is a Moldova-based financial institution that provides financing to micro-, small and medium-sized enterprises. ProCredit Bank Moldova was originally established as a finance company in December 1999 under the name Micro Enterprise Credit (MEC) din Moldova SA. As of 2011, it has a network of 23 representative offices throughout the country. ProCredit Bank is a member of Germany’s ProCredit Holding group of banks, which operates in 21 countries in Eastern Europe, Latin America and Africa. ProCredit Bank Moldova is wholly foreign-owned by ProCredit Holding AG, Germany (84.2 percent); KfW, Germany (9.6 percent); and DOEN Foundation the Netherlands (6.3 percent). ProCredit Bank Moldova has USD 47 million worth of assets as of December 31, 2009.
About ProCredit Holding: ProCredit Holding consists of twenty-one banks operating in transition economies and developing countries in Eastern Europe, Latin America and Africa. It provides credit and other banking services to small and medium-sized enterprises and lower- and middle-income savers who have limited access to formal financial services. As of 2009 it had reported assets of EUR 4.9 billion (equivalent to USD 6 billion) and a gross loan portfolio of EUR 3.3 billion (equivalent to USD 4 billion)
About UniCredit Bank Serbia: UniCredit Bank Serbia is a member of UniCredit Group, an Italy-based financial institution. UniCredit Group has a presence in 22 European countries with 9,500 branches. Since 2001 UniCredit Group has operated in the Serbian market as UniCredit Bank Serbia, which now has a network of 70 branches. UniCredit Serbia has an operating income of EUR 76.5 million (USD 107 million), return on equity before tax of 14.2 percent, and loan portfolio of EUR 845 million (USD 1.2 billion) as of 2009.
Sources and Resources:
[1] EBRD (European Bank for Reconstruction and Development) Press Release: “EBRD CONTINUES TO SUPPORT SMALL BUSINESSES IN MOLDOVA”, http://www.ebrd.com/pages/news/press/2011/110221.shtml
[2] EBRD (European Bank for Reconstruction and Development) Press Release: “EBRD PUTS TOGETHER EUR 79 MILLION PACKAGE FOR ?UNICREDIT BANK SERBIA”, http://www.ebrd.com/pages/news/press/2011/110304.shtml
MicroCapital.org Article, May 7, 2010, “European Bank for Reconstruction and Development (EBRD) Provides $1m For Small and Medium-sized Agricultural Enterprises to Tajikistani Bank Amonatbonk”, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-provides-1m-for-small-and-medium-sized-agricultural-enterprises-to-tajikistani-bank-amonatbonk/
MicroCapital.org Article, February 1, 2011, “European Bank for Reconstruction and Development (EBRD) Loans $3m to Mol Bulak Finance of the Kyrgyz Republic for On-Lending to Small and Medium Enterprises (SMEs)”, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-loans-3m-to-mol-bulak-finance-of-the-kyrgyz-republic-for-on-lending-to-small-and-medium-enterprises-smes/
MicroCapital.org Article, March 1, 2011, “European Bank for Reconstruction and Development (EBRD), Credit Agricole Serbia Accept Warehouse Receipts as Collateral for $27m in Loans to Agribusinesses”,?https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-credit-agricole-serbia-accept-warehouse-receipts-as-collateral-for-27m-loans-to-agribusinesses/
MicroCapital.org Article, December 15, 2010, “Microfinance Investment Vehicle European Fund for Southeast Europe (EFSE) and ProCredit Bank Moldova Sign $7m Synthetic, Local-Currency Loan for On-Lending to Microenterprises”, https://www.microcapital.org/microcapital-brief-microfinance-investment-vehicle-european-fund-for-southeast-europe-efse-and-procredit-bank-moldova-sign-7m-synthetic-local-currency-loan-for-on-lending-to-microenterprises/
MicroCapital.org Article, February 15, 2010, “European Bank for Reconstruction and Development (EBRD) and European Fund for Southeast Europe (EFSE) Loan $10m to ProCredit Bank Moldova to Expand Microfinance Operations”, https://www.microcapital.org/microcapital-brief-european-bank-for-reconstruction-and-development-ebrd-and-european-fund-for-southeast-europe-efse-loan-10m-to-procredit-bank-moldova-to-expand-microfinance-operations/
MicroCapital?s Microfinance Universe: European Bank for Reconstruction and Development (EBRD), https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
MicroCapital?s Microfinance Universe: ProCredit Moldova, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=ProCredit+Bank+Moldova
MicroCapital?s Microfinance Universe: UniCredit Bank Serbia, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Unicredit+Bank+Serbia
MicroCapital?s Microfinance Universe: ProCredit Holding, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Procredit+Holding
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/
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