Belgazprombank will streamline USD 20 mln to facilitate foreign trade

Minsk, February 23, 2011 – Eurasian Development Bank (EDB) and Belgazprombank signed the the framework agreement for financing of export and import operations performed by Belgazprombank’s customers. The amount of the credit facility is USD 20 mln.

The Facility includes direct funding as well as confirmation of obligations under L/Cs, guarantees, etc. More than 50% of the credit line will be applied to finance customers’ operations which promote mutual trade between the EDB’s member states.

 

Belgazprombank’s accession to the EDB’s Programme devoted to the development of trade finance instruments is extending the scope of trade facilitation programmes offered by international financial institutions and available to Belgazprombank. In 2004 Belgazprombank joined the EBRD TFP and owing to the active promotion of the respective products to the market the volume of available credit line has been repeatedly increased and in 2010 reached USD 40 mln. In 2009 Belgazprombank accessed the IFC GTFP with initial USD 10 mln of credit line which was then increased to USD 60 mln during 2009-2010. Cooperation with EDB in TF area will allow Belgazprombank to promote the goods of its customers to the new markets, discover the new distribution channels and revive prior economic relations.

 

“The implementation of this project will allow the Bank to extend its external funding sources for on-lending to the enterprises engaged in international trade, - said Sergey Shaban, Deputy Chairman of Belgazprombank – This agreement will contribute to increasing of trade volumes between the EDB member states and to fostering of integration processes between them. We hope that in the future other participants will join the programme and with the EDB’s assistance we will be able to promote further growth of mutual trade between CIS countries accounting for over 50% of foreign trade balance of Belarus.

 

Belgazprombank is the authorized bank of Gazprom Group in Belarus and has been working in banking business since 1990. Bank is among the Top 10 Belarusian banks occupying the 7th place in terms of assets and capital.

 

Eurasian development bank (EDB) is the international financial organization founded in order to foster economic growth of member states, promotion of trade relations between them and development of integration processes in Eurasian region. The EDB’s member states are: Russia, Kazakhstan, Belarus, Armenia and Tajikistan.