BSTDB issues $ 5 mln loan to CreditWest Bank to support SMEs

KYIV. Sept 1 (Interfax-Ukraine) – The Black Sea Trade and Development Bank (BSTDB, Thessaloniki, Greece), as part of expanding cooperation with CreditWest Bank (West Finance and Credit Bank, Kyiv), has provided the Ukrainian financial institution with access to a new loan of $ 5 million to support the development of small and medium-sized enterprises (SME) in Ukraine, the banks said.

"The new mechanism of the BSTDB will be used to increase the availability of financing for private small and medium-sized enterprises and entrepreneurs in accordance with the strategy of expanding the loan portfolio of SMEs implemented by CreditWest Bank," the release says.

The Ukrainian bank adds that, as part of the strategy, it actively participates in international and national programs to support SMEs.

The BSTDB and CreditWest Bank reminded that they have been actively cooperating since 2015, when a renewable line of trade financing for $ 5 million was provided. Under this line, the BSTDB issued a total of $ 35 million to the Ukrainian bank to finance foreign trade operations of Ukrainian companies with the countries of the Black Sea region and outside of it.

The financial institutions note that the partnership between the BSTDB and CreditWest Bank, controlled by the Turkish family Altinbas, is an example of the BSTDB’s support for cross-border FDI between the member states, in particular the strengthening of Turkish-Ukrainian economic and investment relations.

CreditWest Bank was founded in 2006. Its sole shareholder was Turkish-based Altınbas Holding INC.

Altinbas Group includes companies operating in the fields of jewelry manufacturing, finance and energy, logistics, real estate, education and sports.

According to the National Bank of Ukraine, as of June 1, 2021, the bank in terms of total assets (UAH 2.003 billion) ranked 51st among 73 operating in the country.

The BSTDB is an international organization uniting 11 states of the Black Sea Economic Cooperation organization. The shares of Turkey, Russia and Greece in the capital are 16.5% each, Romania – 14%, Ukraine and Bulgaria – 13.5% each, Azerbaijan – 5%, Albania – 2%, Armenia – 1%, Georgia and Moldova – each 0.5%. The bank aims to promote economic cooperation, trade and cooperation of the countries of the Black Sea region.

The bank provides medium and long-term corporate loans for up to 10 years, and for project financing – up to 15 years. In the case of the private sector, the volume of a loan can be up to EUR90 million, for the public sector – EUR120 million.

Over the years of work, the BSTDB has approved 52 projects for Ukraine for EUR836 million. The bank’s portfolio in 2020 exceeded EUR2 billion, which is 12% more than in 2019.