BSTDB FINANCES FIRST OPERATION

Press Release | 21-Dec-1999

The Black Sea Trade and Development Bank (BSTDB) has agreed to make available US$ 12 million to built a gas compressor station in Ukraine for a trans Balkan gas pipeline project. This marks the successful commencement of the BSTDB's lending operations, following the inauguration of the Bank in June, 1999.

The project is to be financed together with the European Bank for Reconstruction and Development (EBRD) as arranger. It will increase the capacity of the gas pipeline from Russia to Türkiye via Ukraine, Moldova, Romania and Bulgaria. It will be implemented byGastransit(Ukraine), a joint venture company established by Gazpromof Russia, Naftogazof Ukraine, Transbalkan and Turusgas of Türkiye. The total cost of the project is US$ 78 million.

The BSTDB was established in 1998 by eleven countries of the Black Sea Economic Cooperation Organization (BSEC): Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, Ukraine, and has its headquarters in Thessaloniki (Greece).

BSTDB is an international financial institution with a regional development mandate. The initial authorised capital of the Bank is SDR 1 billion. BSTDB enjoys preferred creditor status.

The Bank supports economic development and regional cooperation by providing financing for projects and trade transactions to the public and private enterprises in Member States.

Over the first five months after its inauguration the BSTDB has been working on a significant number of possible projects in line with its mandate. Over the coming months the Bank will be screening these initiatives with a view to select the most promising operations for approval by its Board of Directors.