In a landmark transaction, EBRD client Belgazprombank has been granted an $820,000 loan from EBRD to boost micro, small and medium business lending.

The transaction includes the longest maturity for a Belarusian loan syndication since 2010.

The EBRD will provide an A loan of $270,000. The remaining $550,000 B loan will be provided by the European Fund for Southeast Europe (EFSE). Both loans have a five-year maturity.

The EFSE works to unite private and public sources of financing in order to fund micro and small enterprises.

Since the start of the global financial crisis, the syndicated loan market for Belarusian borrowers has been subdued, limiting the market to the accessing of short-term funds by state-owned banks.

Three Belarusian state-owned banks tapped the market for international syndicated loans in the beginning of 2010, with maturities of no longer than one year.

The transaction will grant BGPB access to the syndicated loan market and will also allow Belgazprombank to diversify its funding base while also lengthening its balance sheet's maturity profile.