BSTDB Extends US$ 5 Million Credit Line to the Microfinance Bank of Ukraine
Press Release | 18-Apr-2003
The Signing Ceremony Held in Thessaloniki During the State Visit of the President of Ukraine to Greece
The Black Sea Trade and Development Bank (BSTDB) has extended US$ 5 million credit line to the Microfinance Bank (MFB) of Ukraine. The signing ceremony of this loan took place in Thessaloniki, on April 18, during the working visit to Greece of the President of Ukraine, Mr. Leonid Kuchma.
The credit line extended by BSTDB to MFB carries a tenor of three years and is for the financing of the micro and SME sector in Ukraine. The support BSTDB is giving through MFB will benefit small enterprises, sole proprietors and entrepreneurs in various parts of the country. MFB has a proven track record in this field. Launched in January 2001, MFB has disbursed over 12000 loans for a total of 65 million USD to Ukrainian micro and small businesses during its first 2 years of operations. The Bank sees as its mission to promote the best banking practices of micro and small business lending in Ukraine in order to improve access to financing for the dynamic and fast-growing SME sector in the country. MFB's shareholders include IFC (World Bank Group), EBRD and various Funds from EU countries.
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. With an authorized capital of SDR 1 billion (approx. USD 1.3 billion), the Bank supports economic development and regional cooperation by providing financing, guarantees, and equity for projects in public and private sectors in its member countries. BSTDB actively cooperates with micro and small enterprises lending institutions in its member countries, such as Azerbaijan Microfinance Bank, KMB Bank in Russia, Microfinance Bank of Georgia and MEC in Moldova. Moreover, BSTDB has extended SME credit and guarantee facilities in Romania (through BancPost and Banca Romaneasca), Bulgaria (ProCredit Bank), and Armenia. Since the commencement of operations in 1999, BSTDB's Board of Directors has approved more than 50 operations totaling more than 450 million US dollars.