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Enhancing access to credit and providing innovative services to the MSME sector.  The role of the Donors’ EBRD TC Fund Pro...
Contents <ul><li>1.   The EBRD </li></ul><ul><li>2. Mobilising donors’ co-financing  </li></ul><ul><li>3. Supporting the M...
1. The EBRD <ul><li>International financial institution, promotes transition to market economies in 29 countries from cent...
 
2.   Mobilising donors’ grant co-financing <ul><li>Donors TC Funds play a  critical role in the EBRD’s activities .   </li...
3. EBRD’s support to the MSME sector EBRD Enhanced access to credit and to equity investments  Trade services Advisory ser...
3.1. The small business lending programme <ul><li>To support banks and  (non) financial institutions that have a  clear in...
Providing entrepreneurs and firms  with access to otherwise scarce finance. Small  business 1. Loans to local banks 3. On ...
Examples <ul><ul><li>The EU/EBRD SME Facility </li></ul></ul><ul><ul><li>The EU/EBRD Preparatory Action </li></ul></ul><ul...
A. The EU/EBRD SME Finance Facility  <ul><li>11 countries in central Europe .  This is channelled through local banks, lea...
B. The Romanian micro-credit facility <ul><li>It provides  loans to local banks and non-bank micro finance institutions  t...
3.2. The “Local Enterprise Facility for W. Balkans” <ul><li>In May 2006 EBRD and Italy agreed on the establishment of the ...
3.3. The Sustainable Energy Finance Facility (SEFF) <ul><li>2006: the EBRD launch  the  Sustainable Energy Initiative </li...
A consolidated modus operandi <ul><li>The EBRD has organised donor funding to provide  incentive payments  to borrowers fo...
Bulgarian Energy Efficiency and Renewable Energy Credit Line (BEERECL)   <ul><li>US$50m credit line with Bulgarian banks f...
3.4. Providing advisory services  through the TAM / BAS Programmes Since 1993: 1,360 enterprises restructuring projects € ...
BAS Bulgaria – (C/o Ms. Julieta Hubenova) 17, Moskovska Ulica <ul><li>http:// www.basprog.com/statistics_en.htm </li></ul>...
3.5. EBRD’s Trade Facilitation Programme (TFP) <ul><li>The TFP is aimed at providing  guarantee to trade transaction .  </...
TFP as a regional business development tool http://www.ebrd.com/tfp <ul><li>Active TFP: </li></ul><ul><ul><li>South Easter...
4. Conclusions <ul><li>Efficient   approach  to lending, building on additionality and sound banking procedures </li></ul>...
Thanks for your attention <ul><li>[email_address] </li></ul>
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136_2.2 Raffaele BOLDRACCHI ppt.ppt

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  • 3 EBRD manages technical cooperation funds provided by donor countries Examples include energy audits carried out at industrial companies Whilst funds grant sources are more difficult to find in new member states such as Czech Rep, in countries such as Bulgaria, grant funding has been important part of activity in renewable energy sector
  • 3 EBRD has signed two new projects in Bulgaria: “ Residential EE credit line” (€15.0 million) – Credot line to Bulbank – ProCredit Bulgaria “ EE &amp; RE Framework” (€63.0 million) – Credit line to Biochim – Bulgarian Post Bank – Bulbank – Raiffeisen Bank BG – United Bulgarian bank.
  • Julieta HubenovaBAS Programme National Director2nd Floor, 17, MoskovskaСофия 1000, България Tel: +359 02 987 6611Fax:+359 02 987 6614E-mail: [email_address]
  • Transcript of "136_2.2 Raffaele BOLDRACCHI ppt.ppt"

    1. 1. Enhancing access to credit and providing innovative services to the MSME sector. The role of the Donors’ EBRD TC Fund Programme Raffaele BOLDRACCHI Principal manager - Official Co-financing Unit CEI – SEF Sofia, November 20, 2007
    2. 2. Contents <ul><li>1. The EBRD </li></ul><ul><li>2. Mobilising donors’ co-financing </li></ul><ul><li>3. Supporting the MSME sector </li></ul><ul><li>3.1 The small business lending programme </li></ul><ul><li>3.2 The Sustainable Energy Financing Facilities </li></ul><ul><li>3.3 The “Local Enterprise Facility for W. Balkans” </li></ul><ul><li>3.4 The TAM/BAS Programmes </li></ul><ul><li>3.5 The “Trade Facilitation Programme” </li></ul><ul><li>Conclusions </li></ul>
    3. 3. 1. The EBRD <ul><li>International financial institution, promotes transition to market economies in 29 countries from central Europe to central Asia </li></ul><ul><li>Owned by 61 countries and two inter-governmental institutions </li></ul><ul><li>Capital base of €20 billion </li></ul>Cumulative commitments €34.9 billion Unaudited June 2007
    4. 5. 2. Mobilising donors’ grant co-financing <ul><li>Donors TC Funds play a critical role in the EBRD’s activities . </li></ul><ul><li>Their funding helps prepare and/or implement Bank projects . </li></ul><ul><li>The TC funding is provided in a tied or untied way </li></ul><ul><li>The Bank uses donor funds to engage expert consultants who provide advice on a broad range of assignments. </li></ul><ul><li>Exhaustive set of success indicators formulated on ex-ante basis </li></ul>
    5. 6. 3. EBRD’s support to the MSME sector EBRD Enhanced access to credit and to equity investments Trade services Advisory services (TAM/BAS)
    6. 7. 3.1. The small business lending programme <ul><li>To support banks and (non) financial institutions that have a clear institutional commitment to MSMEs . </li></ul><ul><li>Instruments: Loan finance, Leasing, Equity, etc . </li></ul><ul><li>Since 1992, more than €11.4 billion provided through the EBRD’s small business lending programmes to support MSME. </li></ul><ul><li>By the end of 2006, donors contribution amounted to €336.1 million : € 172.5 million for TC and €163.5 million for investment co-financing. </li></ul>
    7. 8. Providing entrepreneurs and firms with access to otherwise scarce finance. Small business 1. Loans to local banks 3. On lending 2. Advice / procedures <ul><li>Criteria for mSME Lending Facility </li></ul><ul><li>Small loans up to €160,000 </li></ul><ul><li>for SME employing up to 100 people </li></ul><ul><li>Micro loans up to €8,000 </li></ul><ul><li>for enterprises employing up to 10 people </li></ul>
    8. 9. Examples <ul><ul><li>The EU/EBRD SME Facility </li></ul></ul><ul><ul><li>The EU/EBRD Preparatory Action </li></ul></ul><ul><ul><li>The EBRD W. Balkans SME Finance Facility </li></ul></ul><ul><ul><li>The Russian Small Business Fund </li></ul></ul><ul><ul><li>EBRD’s Azeri Multi-Bank Framework Facility </li></ul></ul><ul><ul><li>The US/EBRD SME Financing Facility </li></ul></ul><ul><ul><li>The Romanian micro-credit facility </li></ul></ul>
    9. 10. A. The EU/EBRD SME Finance Facility <ul><li>11 countries in central Europe . This is channelled through local banks, leasing companies and equity funds </li></ul><ul><li>€ 1.35 billion of funding also covering rural and leasing windows . </li></ul><ul><li>EC contribution to the programme totals €197 million . </li></ul><ul><li>Key facts (end 2006): </li></ul><ul><ul><ul><ul><li>110 credit lines totalling €1,076.5 million …. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>… . to 39 banks and 37 leasing companies. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Over 85,500 transactions worth more than €1.75 billion </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Average sub-loan size for each business is as low as €22,657 , while leases average €19,016 . </li></ul></ul></ul></ul>
    10. 11. B. The Romanian micro-credit facility <ul><li>It provides loans to local banks and non-bank micro finance institutions to on-lend to the smallest enterprises, sole entrepreneurs and farmers. It’s a joint initiative: </li></ul><ul><ul><li>€ 40 million from the EBRD </li></ul></ul><ul><ul><li>€ 13.6 million from the EU Phare Programme </li></ul></ul><ul><ul><li>€ 4.42 from the Romanian government . </li></ul></ul><ul><li>It include a €2.5 million programme to support institution building of the partner lending </li></ul><ul><li>A €3 million risk-sharing facility has been established to encourage partner lending institutions to finance start-up MSEs (those less than 12 months old) </li></ul>
    11. 12. 3.2. The “Local Enterprise Facility for W. Balkans” <ul><li>In May 2006 EBRD and Italy agreed on the establishment of the “ Western Balkans Local Enterprise Facility ” </li></ul><ul><li>It’s a €32 million facility devoted to support EBRD 's equity driven investments with local enterprises in the region. </li></ul><ul><li>Italian contribution amounted to €12 million , out of which €2.0 million to provide technical support for the implementation of the LEF </li></ul><ul><li>The LEF provides equity, quasi-equity and debt financing to local enterprises in the Western Balkans countries. </li></ul>
    12. 13. 3.3. The Sustainable Energy Finance Facility (SEFF) <ul><li>2006: the EBRD launch the Sustainable Energy Initiative </li></ul><ul><li>SEFF : is one of the six SEI instruments. </li></ul><ul><ul><li>It’s active in Bulgaria – Croatia – Romania – Slovak R. – Ukraine – Georgia. Russia is in preparation and provides: </li></ul></ul><ul><ul><li>Credit lines or guarantees made available by the EBRD to local banks for on-lending to borrowers … </li></ul></ul><ul><ul><li>… undertaking sustainable energy projects in the corporate, municipal and residential sectors. </li></ul></ul>
    13. 14. A consolidated modus operandi <ul><li>The EBRD has organised donor funding to provide incentive payments to borrowers for sustainable energy projects, … </li></ul><ul><li>… and administration fees for local banks on completion and full installation of project components </li></ul><ul><li>The EC has been a key donor having provided: </li></ul><ul><ul><li>€ 49 million via the Kozloduy (BG) and Bohunice (SK) decommissioning support funds, and </li></ul></ul><ul><ul><li>up to €44 million for SEFFS in Romania, Ukraine (Moldova) and W. Balkans. </li></ul></ul><ul><ul><li>Additional €40 million could be made available from the Ignalina Decommissioning support fund </li></ul></ul><ul><li>Other relevant donors have been Austria and Sweden ( Ukraine ) and Canada – UK – ETC Fund ( Georgia ) </li></ul>
    14. 15. Bulgarian Energy Efficiency and Renewable Energy Credit Line (BEERECL) <ul><li>US$50m credit line with Bulgarian banks for on-lending to private sector for energy efficiency and renewable energy projects </li></ul><ul><li>Loan complimented with US$10m from Kozloduy International Decommissioning Support Fund </li></ul><ul><li>14 projects already financed, including hydro, geothermal, biomass and equipment refurbishment </li></ul><ul><li>See http://www.beerecl.com </li></ul>• Bulgarian participating banks • Bulgarian Postbank • DSK Bank • Raiffeisen Bank • UniCredit Bulbank • Unionbank • United Bulgarian Bank
    15. 16. 3.4. Providing advisory services through the TAM / BAS Programmes Since 1993: 1,360 enterprises restructuring projects € 87 million of donor funding Since 1995: 27 offices in 17 countries 5,100 enterprises projects € 58 million of donor funding EC & EAR KEY DONORS
    16. 17. BAS Bulgaria – (C/o Ms. Julieta Hubenova) 17, Moskovska Ulica <ul><li>http:// www.basprog.com/statistics_en.htm </li></ul><ul><li>At the end of December 2006, </li></ul><ul><ul><li>567 applications have been assessed and 478 companies visited. </li></ul></ul><ul><ul><li>BAS Programme Bulgaria has undertaken 244 projects utilizing 2,563,621 EUR . </li></ul></ul><ul><ul><li>A database of consultants has been set up listing some 175 consulting companies, of which 158 have been retained under a BAS funded project. </li></ul></ul>
    17. 18. 3.5. EBRD’s Trade Facilitation Programme (TFP) <ul><li>The TFP is aimed at providing guarantee to trade transaction . </li></ul><ul><li>TFP guarantees may be used to secure payment of various instruments issued or guaranteed by participating banks. </li></ul><ul><li>Since the start of the TFP in 1999, the EBRD has guaranteed and financed more than 6,200 foreign trade transactions totalling over €3.4 billion </li></ul><ul><li>Guarantees of up to 100% of the face value of the underlying trade finance instruments; </li></ul><ul><li>At present over 100 issuing banks in 19 EBRD countries of operations participate in the programme together with over 600 confirming banks and their subsidiaries throughout the world </li></ul>
    18. 19. TFP as a regional business development tool http://www.ebrd.com/tfp <ul><li>Active TFP: </li></ul><ul><ul><li>South Eastern Europe initiative (SEEI) - EUR 13.9 million. SEEI covers Western Balkans countries plus Bulgaria, Croatia and Romania . Donors include Austria, Germany, the Netherlands, Norway and Switzerland. </li></ul></ul><ul><ul><li>Central Asia Risk Sharing Special Fund (CARSSF) - EUR 8.6 million Covers the Kyrgyz Republic, Tajikistan, Turkmenistan and Uzbekistan  Donors include Germany and Switzerland. </li></ul></ul><ul><ul><li>Financial Intermediary Investment Special Fund (TIISF) FIISF covers Moldova, Armenia and Georgia. Funded by the Netherlands EUR 9.5 million .  </li></ul></ul>
    19. 20. 4. Conclusions <ul><li>Efficient approach to lending, building on additionality and sound banking procedures </li></ul><ul><li>Effective technical and financial assistance with a relevant transition impact in supporting enterprises’ competitiveness and internationalisation via </li></ul><ul><ul><li>enhancement of access to credit and to equity finance, </li></ul></ul><ul><ul><li>better advisory services and </li></ul></ul><ul><ul><li>trade development. </li></ul></ul><ul><li>Relevant role of public sector : banking regulatory framework, no market distortion, development of a local consultancy network, etc. </li></ul><ul><li>Donors role is crucial to successful implementation </li></ul><ul><li>New support expected under the multi-donors Bank’s initiatives and the one funded bilaterally by other donors. </li></ul><ul><li>EC Structural and Cohesion funds will also offer fields of cooperation </li></ul>
    20. 21. Thanks for your attention <ul><li>[email_address] </li></ul>
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