Business news

MINSK, 18 December (BelTA) – The Belarusian bank OAO Belinvestbank received €50 million as a subordinated loan from the European Bank for Reconstruction and Development (EBRD) on 18 December, the Belinvestbank press service told BelTA.

The money was transferred as part of the arrangements made when EBRD President Suma Chakrabarti visited Belarus in September 2017. It is a unique deal for the Belarusian financial market. It was facilitated by the Finance Ministry, with a minimal interest rate secured as a result.

The subordinated loan infused the Belinvestbank capital, bolstering the bank’s investment appeal and the level of trust on the part of clients and partners. There are plans to spend the money on financing micro, small, and medium-sized private companies.

The EBRD loan is the best indicator of the effectiveness of the measures the bank management and the Belarusian government take to transform the financial institution. The EBRD loan also represents the highest criterion of trust on the part of European partners.

BelTA reported earlier that in September Belarus President Alexander Lukashenko signed the decree on borrowing €50 million as an external government loan from the EBRD for a period of six years with a view to bolstering Belinvestbank’s capital. The relevant arrangements were made as a delegation of the European Bank for Reconstruction and Development led by EBRD President Suma Chakrabarti visited Belarus on 13-14 September. Members of the delegation met with the Belinvestbank management. Directions for the bank’s corporate development and future cooperation in the course of implementing joint projects were high on the agenda. Close attention was paid to improving the bank’s financial reliability by providing a subordinated loan.