EDB and Belpromstroibank to Co-Finance Investment Projects
Moscow, 11 April 2011. Gennady Zhuzhlev, Deputy Chairman of the EDB Executive Board, and Vasily Matyushevsky, Chairman of the Board of Belpromstroibank (BPS-Bank), signed a memorandum of cooperation in financing investment projects.
The purpose of this document is to enhance cooperation between the two banks and to ensure that their potential for extending financing is realized efficiently – this concerns, particularly, financing of investment projects in Belarus by the EDB and long-term co-financing of projects being implemented by companies from Belarus and other EDB member states.
The memorandum names loan arranging, co-financing of investment projects implemented by Belorussian companies, exchanging of information on investment projects, rendering of expert and advisory services for project parties as key areas of joint activities.
Project-specific terms of the parties’ involvement under the memorandum will be negotiated separately and set out in individual project documents.
Earlier, in December 2010, the EDB signed a loan agreement with the BPS-Bank for a total of $25 million for financing small and medium size businesses in Belarus, and a framework agreement on a $25-million revolving facility for financing export and import transactions of the BPS-Bank’s clients.
Summary
BPS-Bank is one of the oldest and largest banks of Belarus. It was founded in 1923 as a branch of the Industrial and Building Bank of the USSR. This Belarusian branch provided all banking operations and services related to investment, production, procurement and sales. In September 1991 this branch became a joint-stock commercial bank, and in March 1992, following public subscription, it became an open joint-stock company. In October 1999 the company was renamed Belpromstroibank. In December 2009 Sberbank of Russia acquired a large stake in Belpromstroibank. Currently Sberbank of Russia owns 97.42% of BPS–Bank. Belpromstroibank is a system-forming bank of Belarus and maintains a strong presence in all banking segments. Belpromstroibank ranks third in the country in terms of assets, loan portfolio and equity capital size.
For more information on Belpromstroibank please visit www.bpsb.by .