EBRD provides longer-term funding to Credit Bank of Moscow
The European Bank for Reconstruction and Development, pursuing its goal of stimulating grass-roots economic growth in Russia, today lent $10 million to a Moscow-based bank so that its small and medium-sized business clients can gain much needed access to longer-term investment funding.
The Credit Bank of Moscow, which operates in the capital and in the surrounding region, received a five-year loan of $10 million.
These credit line will increase the availability of much needed long term finance to SMEs, both in the City of Moscow and in the Moscow Region, and will help the bank compete in this segment with state-owned and larger private banks, said Jean-Marc Peterschmitt, Director of Bank Debt at the EBRD.
Last year in the same line of lending, the EBRD provided 10 Russian banks a total of $131 million earmarked for on-lending to medium, small, and in some cases micro, businesses. Over half of this was targeted at banks whose client base is outside Moscow and St. Petersburg.
The EBRD, owned by 60 governments and two intergovernmental institutions, aims to foster the transition from centrally planned to market economies in central and eastern Europe and the Commonwealth of Independent States.