Belgazprombank and Development Bank of the Republic of Belarus signed the agreement on the procedure for interaction within the framework of small and medium-sized businesses financing in 2015.
Belgazprombank and Development Bank of the Republic of Belarus signed the agreement on the procedure for interaction within the framework of small and medium-sized businesses financing in 2015.
The cooperation of the two banks in the sphere of SME support began in August 2014 when Belgazprombank was among the first banks to join the Program of the Development Bank for financing of small and medium enterprises. Belgazprombank became the leader of the Program by the number and regional coverage of the financed projects. For the four months of the previous year financing was successfully provided to the bank’s customers from all regions of Belarus engaged in various industries under more than fifty investment projects.
Many years of experience on the market of financial services allowed Belgazprombank to elaborate optimum terms for small and medium companies. In 2015 Belgazprombank will provide individual entrepreneurs and SME companies long-term financing in Belarusian roubles for their investment projects relating to purchase (reconstruction, renovation, building, major repairs) of fixed assets (buildings, structures, machinery, motor vehicles, equipment) required to produce goods and provide services.
The list of the SMEs activities which can be financed in the framework of the new agreement is extended significantly as well as more flexible eligibility criteria for sub-projects are determined. The maximum of funding for loans (lease transactions) is increased to BYR 25 bln. Competitive pricing of facilities fixed at 29,5 percent p.a. amounting to the refinancing rate of the National Bank of the Republic of Belarus increased by 4,5 percentage points, flexible repayment schedule with the maximum grace period of up to 2 years and minimum requirements for co-financing by MSME at their own expense will enable Belgazprombank to take best account of the needs of SME companies.
For information:
Development Bank of the Republic of Belarus is a specialized financial institution founded by the Council of Ministers and the National Bank of the Republic of Belarus. The main objective of the Development Bank is elaboration of financing system for government programs and credit support of the Belarusian export.
The program for support of small and medium enterprises was launched by the Development Bank in August 2014. Two-tier financial mechanism of the program suggests that the Development Bank allocates resources for the implementation by small and medium enterprises of investment projects to partner banks which signed respective agreements. Currently 9 banks are included in the program. In 2015 the financial support from funds of the Development Bank is planned in the amount of BYR 700 bln.
