Financial Sector Institution Building and Crisis Response

Amount:

€12.3 million

Investment focus:

MSMEs, financial intermediaries

Start/end date: 2009 - 2021
Countries covered: Armenia, Azerbaijan, Belarus, Georgia, Moldova, Ukraine
Implementing partner: European Bank for Reconstruction and Development (EBRD)
EU budget: €12.3 million

The project aims at restoring access to credit for micro, small and medium enterprises (MSMEs) in the Eastern Neighbourhood region by providing assistance to financial institutions particularly affected by the financial crisis. Developed as a response to the exceptional situation created by the crisis, the project aims to prevent the risks of contagion of bank failures across the region and a sudden shrinking of the real economy.

Objectives

To provide assistance to banks which have been affected by the global financial crisis, and in which the EBRD has invested as part of a crisis response package.
To improve efficiency, effectiveness and transparency in the sector, resulting in better access to financing for enterprises, particularly MSMEs.
To maintain or create successful and healthy institutions that finance the real economy, operate on market principles and follow sound business practices.

Beneficiaries

Partner Financial Institutions
MSMEs

Activities

Consultants provide assistance to financial intermediaries focusing on specific projects and clients;
Projects that support the wider application of internationally acceptable banking practices in the region, promote competition and have a demonstration effect;
Assistance to Partner Financial Institutions (PFIs) in expanding their regional outreach and diversifying their client base;Institutional strengthening, portfolio restructuring and bad debt workout for PFIs;
Regional framework for targeted crisis response, delivering trade finance banking consultancy services, and spreading know-how of contemporary trade finance banking skills.

Results

As of 31 October 2016, a total of 64 financial institutions have benefited from technical assistance funded by EU NIF under the project in the six EaP countries to help them cope with the consequences of the financial crisis of 2008. The total amount of commitments under the project was approximately EUR 12 million.

Website

http://ec.europa.eu/europeaid/blending/financial-sector-institution-buil...