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International experts to look into SME credit guarantee fund possibility in Belarus

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MINSK, 27 August (BelTA) – As part of the consulting assistance program meant to support entrepreneurship and economic development in the Republic of Belarus the International Finance Corporation (IFC) will evaluate the possibility of creating a guarantee fund in the country and the possibility of increasing deals with movable property as collateral with a view to improving access to finance for small and medium private companies. The statement was made by the head of the IFC representative office in Belarus Olga Shcherbina, BelTA learned from the Association of Belarusian Banks.

ABB Chairman Alexander Kuchinsky has met with Olga Shcherbina and representatives of the IFC’s consulting assistance program Victoria Menkova and Alexander Abrashkevich. Organization and implementation of events was discussed, including an analysis of the potential market and the interest of the banking industry in expanding the product lineup taking into account the SME demand for guarantees and cosigning. There are plans to evaluate the legislation and institutional conditions for the optimal operation of the institution of guarantees and cosigning, the development of optimal organizational and managerial structures as well as the mechanism and procedures for issuing guarantees taking into account the world’s best approaches and sustainable development practices for the SME sector.

Previously the Economy Ministry mentioned plans to create a fund in Belarus to provide collateral for loans granted by commercial banks to small and medium private companies.

The Association of Belarusian Banks was established in 1990 with a view to coordinating the operation of credit and finance institutions and comprises 36 banks and organizations.

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