Customer/Client:  EBRD
Period of realization:  1/07/2010 – 31/12/2013
Country:  Belarus

Project description:

The assignment is in support of the EBRD Belarus Financial Sector Framework, which further extends the Belarus MSE/SME Finance Framework, approved by the EBRD in 2004 and extended in 2007. Belarus Microlending Programme (BMLP) was introduced in Belarus to provide fast and easy credit access to MSEs. The range of financial products to be provided to eligible banks (including Belarusian state banks) under the Framework was broadened and will include all types of senior debt products (e.g. MSE, SME).

Achievements:

• Implementation of an MSME lending scheme tailored to finance the needs of eligible MSMEs in two state commercial banks in Belarus. Establishment of appropriate organizational structures in new branches and introduction of procedures to assist the branch to efficiently enter this new area of business. Introduction of appropriate credit methodology to analyze credit applications, motivate repayment, monitor credits and enforce repayment as well as appropriate means for marketing the product and building the portfolio.
• Support of institutional strengthening of the PBs;
• Implementation of crisis response measures to address weakening of banks asset quality, such as improving portfolio quality management, portfolio review, arrears management, risk management functions;
• Training local managers and loan officers in various techniques of analysing and granting loans and in various methods of recovering them;
• Overseeing proper credit analysis of borrowers, administering and supervising loans and the monitoring of the lending programme overall, problem loan analysis, administration of collection efforts, administration of write-offs and training, and assessment of local personnel;
• Ensuring the EBRD environmental and social due diligence procedures are followed by partner banks;
• Three state banks (Belagroprombank, BelVEB, BPS-Sberbank) joined the Programme. Lending procedures at Belagroprombank were analyzed. At BelVEB and BPS-Sberbank lending procedures were analyzed, MSME lending regulations were developed, personnel motivation schemes were developed, loan officers were selected, MSME units were created, loans are being issued.;
• Continuous loan portfolio monitoring of the PBs that graduated from the TC Programme is carried out.
• By July 2013 92 microlending units were launched (over the total period of the Programme implementation 2002-2013), 29 units were launched during the current project only (2010 – 2013);
• The total number of loan officers trained and retained is 148 (2002-2010), 38 – over the current project;
• Loans disbursed – 36,000 for the total amount of USD 787 million (2002-2013), almost 15,000 out of them for USD 472 million – over the current project (2010-2013);
• Portfolio at risk over 30 days is about 1 per cent (0.79 %). 

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