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EBRD unveils EUR 1 bln solidarity package for businesses to deal with COVID-19

Wednesday 18 March 2020 11:22 CET | News

The European Bank of Reconstruction and Development has announced an emergency ‘solidarity package’ of EUR 1 bln to help busineses deal with the impact of the COVID-19 pandemic.

 

The proposals were approved by the bank’s 38 state-shareholders. Under the emergency programme, the EBRD will set up a “resilience framework” to provide financing for existing EBRD clients with strong business fundamentals experiencing temporary credit difficulties. The planned measures will include an expansion of trade finance and the provision of short-term finance of up to two years through financial institutions, specifically in support of small and medium sized enterprises (SMEs).

The bank said it will seek to provide short-term working capital facilities of up to two years for other corporates and energy developers, and balance sheet restructuring and short term liquidity support for municipal, energy and infrastructure clients. It will assess the need to restructure existing loans, including the possibility of extending maturities and changing other conditions and use its ability to disburse in local currency, including the possible conversion of existing facilities into local currency.

The response will put a premium on providing a rapid response to the needs of companies that are suffering from the effects of the coronavirus and the global economic turmoil that has ensued.


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Keywords: The European Bank of Reconstruction and Development, EBRD, solidarity fund, banking, SMEs, coronavirus, COVID-19, pandemic, financial aid, Europe
Categories: Banking & Fintech | E-invoicing, SCF & E-procurement
Countries: Europe
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Banking & Fintech