BSTDB Increases Financing for Micro and Small Business in Ukraine

News | 30-Jan-2008

On 30th January 2008, BSTDB signed a loan agreement for a medium-term Micro and SME Loan Facility with Procredit Bank Ukraine for the amount of USD 10 million.

The loan facility carries a tenor of three years and intends to finance sub-loans offered by Procredit Bank to micro, small and medium enterprises in Ukraine. The borrower already has a successful credit history with two previous BSTDB’s SME facilities for the amounts of USD 7,5 million (June 2004) and USD 12.5 million (July 2006) being successfully utilized.

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Founded in early 2001, Procredit Bank Ukraine is part of Procredit Group. Its target market consists of micro-and SME customers and its core product is lending. The bank’s head office is located in Kiev. Procredit Bank was ranked 39th in Ukraine by assets at end of September 2007. The Bank has over 60 branches throughout the county and plans further expansion of the network. Since its foundation, Procredit Bank Ukraine has grown rapidly in absolute terms and by number of customers.

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. Moody’s rates BSTDB Baa1 Long Term and P2 Short Term, with positive outlook.