BELARUS NEWS AND ANALYSIS
DATE:
16/07/2009
Belgazprombank limit under EBRD Trade Programme raised to $10 million from $1 million
The European Bank for Reconstruction and Development has approved a 10-fold increase in the amount of foreign trade that Belgazprombank, one of Belarus's leading banks, can finance. Its maximum exposure at any one time to foreign trade deals under the EBRD's Trade Facilitation Programme (TFP) has now been raised to $10 million. The previous limit was $1 million.
The EBRD launched its TFP initiative in 1999 in order to revive east-west trade which had collapsed in the aftermath of the Russian financial crisis a year earlier. Over 8,200 trade deals worth over ?5.2 billion ($7.3 billion) have since been facilitated through this EBRD programme, including 194 transactions in Belarus worth ?200 million ($280 million).
At a time when trade finance is scarce as many foreign banks take a more cautious approach to providing this type of facility, the increase will help Belgazprombank both to meet rising demand and provide support for its local clients, especially the small and medium businesses. These have everywhere been particularly hard hit by the current market turmoil.
As part of its global anti-crisis response, the EBRD has been making extra trade finance volumes available for some of most active issuing banks participating in its Trade Facilitation Programme, including Belgazprombank, one of five Belarus banks taking part in this EBRD initiative.
Belgazprombank joined the programme in 2004 and has so far used it to finance foreign trade transactions worth over ?2.3 million (over $3 million).
The programme supports trade involving the EBRD's 30 countries of operations. By providing guarantees to confirming banks for the payment of various trade finance instruments issued by local banks, this EBRD programme allows participating banks to reduce the cash they would otherwise be required to deposit as collateral, thus freeing up their working capital.
Issuer profile: The issuer's charter capital equaled 20 448 Belarus rubles (USD9.5 mln), as of June 30, 2005.
Belgazprombank has all the required banking licenses, as well as the license for the role of manager in bankruptcy proceedings. Deloitte&Touche has been the issuer's auditor since 1997.
Issuer's shareholders: Gazprom - 33.91%; Gazprombank - 33.91%; the Republic of Belarus represented by the Ministry of Economy - 8.63%; Beltransgaz - 23.50%; other shareholders - 0.05%.
Outstanding issues:
4 issue(s) outstanding worth BYR 67 000 000 000
3 issue(s) outstanding worth USD 45 000 000
2 issue(s) outstanding worth EURO 15 000 000
Issuer's rating:
Fitch Ratings B/Negative Int. Scale (foreign curr.) 09.07.2009
Source:
http://www.cbonds.info/all/eng/news/index.phtml/params/id/438366
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