EBRD approves USD 10 million SME Credit Line Facility
On June 17, 2008 EBRD’s Board of Directors approved USD10 million SME Credit Line Facility to Credit Bank of Moscow and now the project is pending signing which is expected in July.
The proposed USD 10 million tranched senior credit line aims to support the efforts of the Bank to develop SME lending further, with a particular focus on small entities. CBM is currently enhancing this line of business in order to be better placed to serve its customers’ needs in the increasingly competitive market environment.
This project will facilitate the expansion of CBM into regions with low banking penetration and support the development of SMEs, a segment which has more difficulties accessing long-term credit. The proposed project will also assist CBM to: a) diversify its funding base and lengthen its maturity; and b) support CBM in its efforts to diversify business profile in small business lending and reduce customer concentrations.
CBM has traditionally committed to support SMEs, which has always played a key role in its business model. This SME Credit Line Facility is already the fourth project with international developmental institutions aimed to respond to the rapidly growing funding needs of the Russian SMEs. In 2004 and 2005 CBM obtained two 5-year USD 10 million loans for SME financing from IFC and EBRD and a 6-year USD 20 million loan from BSTDB in 2008. CBM regards co-operation with IFIs as an essential element of its business strategy and this reliable partnership is expanding from year to year.