EDB and the SME Corporation enter into a cooperation agreement to support SMEs
18 October 2016
Moscow, 17 October 2016. Eurasian Development Bank (EDB) and the Federal Corporation for the Development of Small and Medium-Sized Enterprises (SME Corporation) signed a cooperation agreement to provide comprehensive support to small and medium-sized businesses in Russia. The signatory from EDB is Dmitry Pankin, Chairman of the Management Board, and from the SME Corporation Alexander Braverman, General Director.
The agreement governs the parties’ relations in respect of the SME Corporation’s provision of independent guarantees to EDB to secure SMEs' obligations under loan and credit agreements with the Bank.
"Cooperation between Eurasian Development Bank and the SME Corporation will give a new impetus for the development of small and medium-sized businesses. This will be an efficient contribution to the improvement of the economic situation in the region," Dmitry Pankin, Chairman of the Management Board at EDB, emphasised.
"The SME Corporation is developing a set of measures to support small and medium-sized enterprises, including in cooperation with international financial institutions promoting economic development in Eurasian countries. The agreement with the new partnering bank will help SMEs to run projects in priority economic sectors and attract finance on affordable terms," Alexander Braverman added.
EDB's new project with guarantees from the SME Corporation will be the construction of Beloporozhskaya small HPPs 1 and 2 in Karelia. This is the first project in Russia financed by the New Development Bank BRICS (NDB). The respective decision was made in July 2016. According to the approved scheme of finance, the project will involve two international banks – EDB and the NDB. The total investment will amount to RUB 11.8 billion. The SME Corporation will guarantee 50% of the loan (approximately RUB 4 billion).
Additional Information:
Eurasian Development Bank (EDB) is an international financial institution founded by Russia and Kazakhstan in January 2006 with the mission to facilitate the development of market economies, sustainable economic growth, and the expansion of mutual trade and other economic ties in its member states. EDB’s charter capital totals US $7 billion. The member states of the Bank are the Republic of Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, and the Republic of Tajikistan.
EDB Media Center:
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