(BRIEF) At the 33rd Annual Meeting and Business Forum of the European Bank for Reconstruction and Development (EBRD) in Yerevan, the Bank unveiled its latest initiative under the Risk Sharing Framework (RSF) to help domestic companies in Armenia, Mongolia and Uzbekistan. . By sharing part of the risk of six loans totaling $24. 3 million from local partner banks, the EBRD aims to increase the lending capacity of these institutions and open new avenues of financing for local businesses. In Armenia, loans to the TUMO Center for Creative Technologies and the Karas Group will drive innovation and expansion in key sectors. Meanwhile, in Mongolia, MyMonSource’s current capital support aligns with efforts for the country’s electrical appliance supply chain. In Uzbekistan, loans to Avtobus Rent and Tillo Domor, as well as support to Qadrli, demonstrate the EBRD’s commitment to fostering expansion in various sectors. This strategic framework highlights the EBRD’s commitment to supporting the personal sector and driving economic progress in its regions of operation, with more than 400 subloans facilitated to date, totaling more than €1 billion. euros.
(PRESS RELEASE) LONDON, May 30, 2024 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) is using its Risk Sharing Framework (RSF) to expand national corporations in Armenia, Mongolia and Uzbekistan and to breathe life into the creditworthiness of local partner banks.
At the EBRD’s 33rd Annual Meeting and Business Forum in Yerevan, the Bank agreed on threat percentages of six loans from local banks with a collective price of $24. 3 million. These transactions under the EBRD’s risk-sharing agreements with local lenders will unlock new financing and expansion opportunities for local businesses.
In Armenia, the EBRD shares the threat of a $15. 7 million loan from InecoBank to the TUMO Centre for Creative Technologies. The budget will be allocated to the creation of the new TUMO center for innovation and economic expansion in Armenia. The European Union also contributes $12. 5 million to the total project load.
The EBRD also shares the threat of a $1. 2 million loan from InecoBank to the Karas group, one of Armenia’s leading fast-food chains. The loan will allow the company to expand and implement its new marketing strategy and renovate 28 of its establishments.
In Mongolia, the EBRD will cede the threat of a $1. 2 million current equity loan from XacBank to MyMonSource, a supplier of electrical equipment. The loan will meet the company’s current capital requirements and finance the acquisition of new electrotechnical products. MyMonSource will also receive a grant of up to €110,000 as a component of the EBRD’s Skills in Business programme, to attract, nurture and retain local talent.
In Uzbekistan, the EBRD will share the risk of two loans made through Hamkorbank: one to Avtobus Rent, a leading car and personal bus rental company, and the other to Tillo Domor, a cheese producer based in Urgench. A $1. 1 million loan to Avtobus Rent will be used for the purchase of new passenger vehicles, which will help meet the growing demand for comfortable transportation for tourists in Uzbekistan. This task is carried out through a grant of $90,500 awarded by the Swiss State Secretariat for Economic Affairs through the EBRD’s Small Business Programme. Meanwhile, a $3. 1 million loan to Tillo Domor will allow the company to complete the structure of its new dairy plant by the end of 2024.
Finally, the EBRD agreed to share the percentage of a $2 million loan that Uzbekistan’s SQB is offering to Qadrli, a local manufacturer of flour and wheat products, which will allow the company to buy more wheat and meet the growing demand for its products.
The FSR is a strategic framework within the framework of the Bank’s Small Business Initiative, committed to the expansion and advancement of the personal sector in the EBRD regions. The RSF allows the Bank to share the risk of loans from partner banks to eligible corporations in need of current capital. , helping those corporations grow and become more competitive.
To date, the EBRD has partnered with 38 local monetary institutions, facilitating more than 400 RSF sub-loans to small and medium-sized enterprises, totalling more than €1 billion.
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SOURCE: EBRD
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