Belgazprombank gets $30mn loan from European Fund for Southeast Europe

Belgazprombank and the European Fund for Southeast Europe (EFSE), the world’s largest microfinance investment fund, signed a senior loan agreement. Under the agreement Belgazprombank will take a loan of $30 million from EFSE to expand its housing finance operations and increase lending to micro- and small businesses in Belarus, BelTA learnt from the Bank.

The availability of a $15mn 9-year Housing Finance tranche makes this agreement even more important. This housing loan is the first of its kind and an unprecedented event for Belarus’ banking system, Belgazprombank says.

“This loan heralds the arrival of EFSE on the Belarusian financial market, and this is an excellent event not just for EFSE and Belgazprombank but, above all, for the Bank’s clients, who will gain an opportunity to improve their living conditions through obtaining loans at Belgazprombank on very favorable terms,” said Sergey Shaban, Deputy Chairman of the Board of Belgazprombank.

“We are entering the Belarusian market in these challenging times and we are confident that our long-term funding will pave the road to other investors. In this endeavor, EFSE is partnering with Belgazprombank, one of the most reputable financial institutions in the country”, said Dr. Klaus Glaubitt, Chairman of EFSE Board of Directors.

The European Fund for Southeast Europe (EFSE) offers long-term funding instruments to qualified local financial institutions for on-lending to micro and small enterprises and private households. EFSE also runs a Development Facility which also embraces consulting and training services. The international investors in the Fund comprise the European Union, the governments of Germany, Switzerland and Austria, as well as international financial institutions such as the KfW, IFC and FMO.

Belgazprombank is among the Top 10 Banks in Belarus in terms of assets, capital and profitability and the leading player in the MSME business area. It has a transparent ownership structure with Russian Gazprom and its subsidiary Gazprombank jointly holding over 98% of its shares. The Bank has been long cooperating with the European Bank for Reconstruction and Development and International Finance Corporation in the field of supporting micro, small and medium businesses and trade finance. Acquiring funding from EFSE will allow the Bank to intensify its cooperation with MSE segment and give more focus to private households.

Source: BelTA