BSTDB Increases Support to SME Lending in Russia

Press Release | 16-Oct-2003

BSTDB will make available a USD 5 million 3-year loan to Bank for Small Business Lending (KMB-Bank) in Russia in order to support expansion of KMB Bank's lending to the Russian small businesses. The new facility follows the first BSTDB credit line extended to KMB bank in December 2001, thus increasing the total amount of the BSTDB SME sector financing provided through KMB Bank to USD 9 million.

BSTDB continues increasing its financial support to the SME sector in the Black Sea Region, which now exceeds USD 58 million. By financing banks active in SME lending in the Black Sea region BSTDB aims to improve access of SMEs to medium-term financing while promoting market reforms and economic development in its member countries.

KMB Bank is owned by the EBRD, DEG (Germany), and Soros Foundation and is one of the market leaders in SME lending in Russia. Being the only international bank widely operating in Russia, through a network doing business in more than 20 regions of the country, the bank has developed an efficient SME lending franchise and is well positioned to deliver BSTDB financing to Russian SMEs throughout Russia.

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 1,4 billion), the Bank supports economic development and regional cooperation by providing financing for investment projects and trade transactions in public and private sectors in its member countries. Since the commencement of operations in 1999, BSTDB's Board of Directors has approved over 50 operations exceeding USD 500 million.