FORUS Bank will allocate €2 mln for small business development

FORUS Bank received €2 mln from Microfinance Loan Obligations (MFLO) (Switzerland) under the Micro and Small Business Development Program for Eastern Europe. FORUS Bank is Russia’s only bank involved in this program.

The overall funding to be allocated for backing Russian businessmen after the transaction with MFLO will amount to €6 mln.

The sum of €2 mln already received is a second tranche provided by the Swiss lender to FORUS Bank. All in all, under the agreement signed in November 2005, MFLO will provide three tranches of €2 mln, each for a period of 4 years. The first part of the sum was received last November, with the remainder scheduled to be received in October 2006.

Under the Micro and Small Business Development Program, MFLO also provided funding to 5 banks in Eastern Europe, FORUS Bank becoming one of two organizations which received the maximum investments. Its extensive branch network and credit programs providing businessmen with easier non-pledge access to financial resources will enable FORUS Bank to use the allocated funds for lending to several thousands of businessmen in 26 regions of European Russia.

MFLO (Switzerland) is not the only financial organization cooperating with FORUS Bank. In February 2006, the Bank announced the signing of an agreement with IFC, under which the Corporation is to grant a direct loan of RUR180 mln for a period of 5 years, also for development of domestic small business through FORUS Bank programs. This transaction was the first direct ruble loan IFC has ever extended to a financial institution in Russia.

Apart from IFC, a number of other first-rate international financial organizations like EBRD, Blue Orchard, OPIC, BSGV, HSBC, ING, to name just a few have also provided funds to the bank.

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