The European Bank for Reconstruction and Development (EBRD) has provided a EUR 100 million (USD 146 million) medium term credit line to Bank Millennium of Poland for on-lending to small and medium enterprises (SMEs). This credit line supports Bank Millennium’s recently announced strategy to increase its business in the SME segment of Poland, which has been affected by the financial crisis.
Mr Jean-Marc Peterschmitt, Director of the Financial Institutions Department of EBRD, commented: “The EBRD is pleased to support Bank Millennium both in its drive to develop a more balanced business model in the current difficult market conditions and in its efforts to prepare for growth in lending as economic recovery gathers strength. This transaction will provide a boost to the financial sector in Poland, to the benefit of local businesses currently facing limited access to credits.”
By: Stefanie Rubin, Research Assistant
About Bank Millenium:
Bank Millenium was founded in Poland in 1989. As of 2008, its total assets stood at PLN 33.4 billion (USD 11.8 billion), with a return on equity (ROE) of 20.3 percent and cost to income ratio of 61.8 percent. The bank’s major shareholder is Banco Comercial Portugues, with 65.51 percent.
About the European Bank for Reconstruction and Development (EBRD):
The European Bank for Reconstruction and Development (EBRD) is, according to its website, “the first international financial institution of the post Cold War period.” Headquartered in London, the bank began operations in 1991 upon the agreement of 40 countries and is now “owned by 61 countries and two intergovernmental institutions.” It aims to “finance operations that are both commercially viable and assist development” in 29 countries in Central Europe and Central Asia. It does this by providing loans, debt securities, equity investments, guarantees, and technical assistance to micro and small businesses as well as commercial banks and non-bank microfinance institutions (MFIs).
Additional Resources:
Source Article: EBRD Press Release: “EBRD Boosts Financing for Businesses in Poland,” http://www.ebrd.com/new/pressrel/2009/091130a.htm
MicroCapital Universe: EBRD: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=European+Bank+for+Reconstruction+and+Development+%28EBRD%29
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