The World Bank has approved a $60 million loan to the Development Bank of Belarus (DBRB).
The funds will be allocated to support private business, the message of the World Bank reads.
The objective of the project is “to give access to finance for private micro, small and medium-sized enterprises (MSMEs) and enhance the governance and institutional capacity of the Development Bank”.
“Private enterprises say there’s lack of access to financial resources, which does not allow them to invest and create new jobs,” the official press-release says.
It is expected that this project will help with the employment of ordinary Belarusians.
After the global economic crisis, private enterprises find it increasingly difficult to attract financing. The access of private enterprises to financial resources is limited, especially if they need long-term loans, the message says.
The new project is based on the assessment conducted by the WB in 2014 and 2016. It showed that the subsidies to state-owned enterprises constitute a big share of banks’ lending, which ousts effective investment, experts said.
Belarus was recently promised a €14.5 million loan to support entrepreneurship and 6 million to SMEs by the EU.
Besides, the government is currently working on a set of documents that will significantly facilitate doing business in Belarus. The documents have been submitted for revision to the President.