OREANDA-NEWS. September 22, 2010. The European Fund for Southeast Europe (EFSE), the world’s largest microfinance investment fund, and Belgazprombank announced the signing of a senior loan agreement. Under the agreement Belgazprombank will take a loan of USD 30 mln from EFSE to expand its housing finance operations and increase lending to micro- and small businesses in Belarus, reported the press-centre of Belgazprombank.

The most significant achievement of this investment is the availability of a USD 15 mln 9-year Housing Finance tranche. This housing loan is the first of its kind and an unprecedented event for Belarus banking system.

„This loan heralds the introduction of EFSE to the Belarusian financial market and this is an excellent arrangement not just for EFSE and Belgazprombank but above all for the Bank’s clients, gaining an opportunity to improve their living conditions through obtaining loans at Belgazprombank bearing very favourable terms“, said Sergey Shaban, Deputy Chairman of the Board.

“We are entering the Belarusian market in these challenging times and we are confident that our long-term funding will pave the road to other investors. In this endeavour, EFSE is partnering with Belgazprombank, one of the most reputable financial institutions in the country”, said Dr. Klaus Glaubitt, Chairman of EFSE Board of Directors.

About the European Fund for Southeast Europe (EFSE)
Aimed at fostering economic development and prosperity in the region of Southeast Europe, EFSE offers long-term funding instruments to qualified local financial institutions for on-lending to micro and small enterprises (MSEs) and private households. EFSE also runs a Development Facility whereby grants enable technical consulting and training measures to institutionally strengthen the Investment Fund’s partner lending institutions. The international investors in the Fund comprise the European Union, the governments of Germany, Switzerland and Austria, as well as international financial institutions such as the KfW, IFC and FMO.

About Belgazprombank
Belgazprombank is among the Top 10 Banks in Belarus in terms of assets, capital and profitability and the leading player in the MSME business area. It has a transparent ownership structure with Russian Gazprom and its subsidiary Gazprombank jointly holding over 98% of its shares and benefits from the long-standing partnership with the European Bank for Reconstruction and Development and International Finance Corporation in the field of supporting micro, small and medium businesses and trade finance. Acquiring funding from EFSE will allow the Bank to intensify it cooperation with MSE segment and give more focus to private households.