Vostochniy Express Bank hold seminar on successful MSE Lending.

mrc_fin17On May 18–19 Vostochniy Express Bank hold seminar on successful lending to small and medium enterprises (MSE). Representatives of the consulting company Business & Finance Consulting (Switzerland) and Commercial Bank Taizhou City Commercial Bank (China) participated in the seminar. The goal of the seminar was to exchange positive experiences and summarize the results of the two year project on development of lending to micro, small and medium enterprises.

Administered by the European Bank for Reconstruction and Development (EBRD) the project is financed by the Japan-Europe Co-operation Fund of the Japan Government and has been implemented since June 2008 by consultants of Business & Finance Consulting.

During the seminar positive results achieved in the course of the project in Vostonchny Express Bank were presented as a template for development of micro lending in other countries. As the result of the two year project SME lending was developed in 9 branches and over 350 offices of the Bank in Siberia and in the Far East. Despite the market fluctuations the Bank, due to coherent operations and set up effective lending processes has achieved record level of monthly loan disbursements to SMEs which increased from 97 loans in June 2008 to 1685 loans in April 2010. By the end of the first quarter of 2010 the Bank SME loan portfolio was at USD 41.5 million.

Considering these achievements EBRD seeks the opportunity to continue cooperation with Vostochniy Express Bank including provision to the Bank of the new credit lines and technical assistance for further development of SME lending.

Information:

Vostochny Express Bank:

Vostochny Express Bank OJSC is one of the largest Russian banks which has the second largest branch network in the Far East Federal District.

European Bank for Reconstruction and Development (EBRD):

European Bank for Reconstruction and Development is international financial organization which finances projects in 29 countries of Central Europe and Mid Asia. EBRD is a shareholder in 12 Russian banks. In 2009 EBRD initiated 56 projects in Russia amounting to EUR 2.4 billion or 30% of the total volume of the Bank annual operations.

Taizhou City Commercial Bank (TZCB):

TZCB — is one of the leading regional Banks providing loans to SMEs in China. The Bank is located in the economically developed region near the city of Shanghai which is not controlled by the State. Similarly to VEB TZCB experiences dynamic growth of the branch network.

BFC:

Business & Finance Consulting (ВFC) is one of the leading development finance consulting companies specializing on provision of consulting services in the area of small and medium business lending in the transition countries. Since its inception in 2003 BFC has implemented over 50 projects in the countries of Eastern Europe and Asia.

Artur Bulat

Senior Credit Advisor

Business & Finance Consulting