The EDB starts subsidising its own interest rate from the Technical Assistance Fund

08 September 2020

Moscow, 8 September 2020. The Eurasian Development Bank’s (EDB) Technical Assistance Fund has launched a new programme to subsidise the interest rate for investment projects so that borrowers could compensate part of their costs for paying interest on the loans extended by the Bank.

The programme will subsidise new investment projects to be financed by the Bank. The criteria for granting subsidies as approved by the Bank’s Council are rather broad and largely coincide with the principles adhered to by the EDB when selecting projects for financing. The reduced rate will be determined in each specific case by the Bank’s Management Board based on project parameters.

“In accordance with the principles of the Eurasian Development Bank, profit is not the goal of our institution. Our ultimate objective is to ensure the development and integration of our countries – Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. Therefore, it is logical that we use the money we earn through the Technical Assistance Fund to enhance the availability of our financing in order to create a multiplier effect for investment activities. In doing so, we are building up our activity to promote the development of economies and improve the standards of living in the member states,” said Nikolai Podguzov, Chairman of the EDB Management Board.

The EDB Technical Assistance Fund was established to fulfil the Bank’s mission by financing the preparation and implementation of investment projects, extending support for regional integration programmes, and conducting interstate, country, sectoral and innovative research aimed at promoting economic growth, developing market economies of the member countries, and expanding trade and economic relations between them, as well as to support other activities related to the Bank’s operations.

The Fund’s resources are formed from the EDB’s net profit earned over a calendar year and donor funds. The Fund is currently running three programmes: Project Preparatory Technical Assistance Programme, Technical Assistance Programme for Investment Activity Expansion, and Subsidising the Interest Rate for Investment Projects.

To read more about the Fund and its operations, please visit the relevant section on the EDB’s website.

Additional Information:

The 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. The 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.

The EDB Media Centre:

Alexander Savelyev +7 (985) 765 23 59 (Moscow)

Azima Sapargaliyeva +7 (777) 750 00 08 (Almaty)

Sergey Gorbachev +7 (916) 727 22 00 (Moscow)

pressa@eabr.org

www.eabr.org

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