EDB to Provide $20-Million Loan to Belgazprombank

Almaty, 25 February 2011. The Eurasian Development Bank (EDB) and JSC Belgazprombank signed a framework agreement in Minsk. Under this agreement, a $20-million, 24-month revolving facility will be provided for financing export and import transactions of the clients of the Belarusian bank. Marat Dzhaukenov, Deputy Chairman of the EDB Executive Board/Managing Director for Investments, and Sergei Shaban, Deputy Chairman of the Board of Belgazprombank, signed the document.

In accordance with the agreement, 60% of the loan will be allocated for the expansion of trade between Belarus and other EDB member states. This is the EDB’s third transaction of this kind in Belarus in three recent months: earlier the Bank signed two agreements with BPS-Bank for a total of $50 million for financing small and medium size businesses and development of trade financing.

The EDB views trade financing as an efficient tool to promote integration and generate mutual trade flows. The financing of export and import transactions has positive effect on corporate and partner relations between businesses from the Bank’s member states, which in turn paves the way for joint ventures.

Summary

Belgazprombank was founded in 1990 and is an authorised bank of the Gazprom group in Belarus. It is one of the top ten Belarusian banks, ranking seventh in terms of assets and equity size.

In October 2010 Fitch Rating Agency confirmed its long-term IDR for Belgazprombank at ‘B’, changing its forecast to ‘stable’. The short-term IDR was set at ‘B’ and the support rating at ‘4’.