BSTDB provides long-term loan to Credit Bank of Moscow to finance small and medium business

News | 29-Feb-2008

BSTDB will make available up to USD 20 million loan to Credit Bank of Moscow (CBOM) for the purposes of financing small and medium-sized enterprises (SMEs) in Russia.

This bank-to-bank loan, with a repayment period of 6 years, aims to respond to the rapidly growing funding needs of the Russian SMEs, and contributes to the implementation of the Russian Government priorities to promote the development of the SME sector as a backbone of market economy and the main generator of the medium class.

CBOM regards co-operation with international developmental institutions as an essential element of its business strategy. In 2004 and 2005 CBOM obtained two 5–year loans for SME financing from IFC and EBRD, each for USD 10 million.

In the first quarter of 2008, BSTDB signed 4 loan agreements with Russian financial institutions for the total of over USD 100 million.

****************

Credit Bank of Moscow is a universal privately owned commercial bank set up in 1992. Having started business in Moscow and Moscow region, the bank is now expanding to other regions of Russia. CBOM has a network of 55 branches in 12 Russian cities and intends to have up to 75 branches by the end of the year. The bank reported total assets of $1.7 bln and equity of $223 mln as of 2007YE. Credit Bank of Moscow is rated B- (positive) by Fitch and B1 (Positive) by Moody’s.

The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters is in Thessaloniki, Greece. With an authorized capital of SDR 3 billion (approx. USD 4,5 billion), the Bank supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects in the public and private sectors in its member countries. BSTDB is rated Long Term Baa1 and Short Term P2 (both with positive outlook) by Moody’s.