At its upcoming session of the Directors' Board on September 1, the Black Sea Trade and Development Bank will suggest the member states to add EUR 250 million to its capital to boost the Bank's capacities and effectiveness, Bank's President Dmitry Pankin said at a meeting with journalists in Thessaloniki, Report informs.
"Such recapitalization will show the rating agencies that the member states are ready to help and support the bank," Pankin said.
He noted that recapitalization raises the chances of increasing the rating, which has long been on the A- level with the outlook positive.
The Bank's president added that with the current capital, the Bank's projects portfolio of EUR 2.3 billion is also close to the ceiling of around EUR 2.6 billion.
Pankin noted that the BSTDB, like any other development bank, would be glad if its capital increases by a more significant amount - EUR 3-4 billion, which would help it participate in projects with the involvement in the companies' capital. However, it understands the difficulties faced by the member states with their deficit budget.
The Black Sea Trade and Development Bank (BSTDB), an international financial institution with headquarters in Thessaloniki, Greece, was established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. BSTDB started operations in June 1999 and has an authorized capital of €3.45 billion. The Bank supports economic development and regional cooperation in the Black Sea Region through trade and project finance lending, guarantees, and equity participation in private enterprises and public entities in the member countries. BSTDB is rated A-/A-2 by Standard & Poor's and A2/P1 by Moody's.
The Bank's portfolio in Azerbaijan amounts to EUR 482 million on 37 projects.