EBRD investments into Belarus reach record €360mn in 2018

EBRD investments into Belarus reach record €360mn in 2018
Volume of EBRD investments into #Belarus in 2018 reaches record level of €360mn / wiki
By Ben Aris in Berlin January 10, 2019

The European Bank for Reconstruction and Development (EBRD) invested more than €360mn in 21 projects in Belarus in 2018, the multilateral lender said on January 9, reports BelTA – the most the bank has ever invested in Belarus since it launched its operations in the republic. 

According to preliminary estimates, Belarus will be in the Top 10 of the most active countries out of the bank’s 38 countries of operation for 2018.

“Last year was the most successful in the history of the bank's operations in Belarus,” the head of the EBRD representative office in Belarus Alexander Pivovarsky told the media.

Among the EBRD's key promising projects in Belarus was a pilot project to modernise residential buildings to improve their energy efficiency. Together with the Belarusian government, the bank is working on new approaches to corporate governance in the public sector.

In 2018, the EBRD conducted approximately two-thirds of its operations in the private sector, the rest in the public sector.

The EBRD earmarked the largest municipal loan of €84mn to Minskvodokanal, €5mn to the solid waste management company in Pukhovichi District and Cherven District of Minsk Oblast and €42mn to complete the Minsk Ring Road 2 reconstruction project in 2018.

The bank signed loan agreements with a number of foreign and domestic companies in the private sector. The bank allocated €50mn to the manufacturer of particleboard and furniture company IOOO VMG Industry, €20mn to the furniture manufacturer IOOO Mebelain and €20mn to OOO Evrotorg.

In 2018, the EBRD bought a stake in the agricultural group Servolux and also issued a €5mn loan to the pharmaceutical company Apteka Group.

In the banking sector, the EBRD continued cooperation with Belinvestbank, allotting it a €50mn loan.

Work begun to finance new projects in Belarusian ruble.

The EBRD has supported the development of renewable energy in the country, having financed the construction and commissioning of four biogas CHPs in Grodno Oblast and Brest Oblast. And it has launched a Green City action plan for Minsk to identify the activities and areas of investments to address the priority environmental problems.

The Belarusian government and the EBRD signed a memorandum of understanding regarding pre-privatisation support for OAO Krinitsa in 2018-2020.

Since the EBRD began working in Belarus in 1992, the bank has invested over €2.4bn in 115 projects in various branches of the national economy.