Financed ProjectsBank Vostok 2 - SME Financing

Identification Code:

OP/14/0028

Total Operation Cost:

2.500.000

Maturity:

36 months

Operation Status:

Description and Purpose of the Operation:

The USD 2.5 million Loan for SME Financing will be utilized by Bank Vostok for the purpose of providing SME sub-loans to eligible clients in accordance with the eligibility criteria agreed with the Bank.

Countries of Operation:

Ukraine (100,00 %)

Financial Product:

SME's

Sector:

Financial Institutions

Domain:

Private

Borrower/Client:

Bank Vostok

Co-Financiers/Participants:

n/a

Guarantors/Sponsors:

n/a

Developmental and Regional Cooperation Impact:

The operation is expected to have modest but favourable economic benefits for the Ukrainian economy, the most relevant being additional tax revenue gains from increased economic activity under the amount provided. SME financing will improve the flexibility of the operations and permit easier achievement of benefits such as increases in employment, increase in competitiveness, and multiplier effects for other parts of the economy. The Loan will represent an excellent mechanism for BSTDB to support the development and expansion of small and medium sized businesses and entrepreneurs, including in the Black Sea region of Ukraine, which cannot be otherwise accessed by BSTDB directly.

Environmental Classification and Impact (summary):

The Operation has been screened according to Environmental and Social Screening Categories as Category FI. The Borrower will need to develop a basic environmental and social risk assessment procedures/policy. and integrate it into its overall portfolio management, or at least into SME lending. The Loan Agreement will include environmental and social terms and conditions requiring the Borrower to remain compliant at all times with environmental, labor, and health and safety legal requirements in effect in Ukraine; continue to carry out environmental and social assessment of sub-loan of high risks and impacts; observe the BSTDB Environmental and Social Exclusion List; and submit to the Bank annual environmental and social performance reports.

Operation Leader:

Financial Institutions II

E-mail:

fi2@bstdb.org