The European Bank for Reconstruction and Development approved a $10 million senior unsecured loan in two equal tranches to Unibank for on-lending to eligible MSME sub-borrowers, Report informs.
The loan will have a maturity of up to 2 years and will be provided in AZN to be used by Unibank for the growth of its MSME loan portfolio in line with the eligibility criteria of the Financial Intermediary Framework ("FIF").
In parallel to the MSME loan, an uncommitted limit under the Bank's Trade Finance Programme for USD 5 million will be established.
According to the EBRD, the project contributes to the objectives of the Financial Intermediary Framework ("FIF"), supporting the Competitive and Resilient transition qualities. FIF seeks to foster MSME competitiveness by increasing availability of financing and contribute to the competitiveness of financial institutions by enabling innovation in strategy, products, processes, and marketing related to MSME lending. By ensuring that banks have adequate underwriting and risk management practices in place, the FIF also seeks to encourage sustainable lending practices, supporting the resilience of the financial system.