Member's Documents
Mid-Sized Corporate Support Facility
Published by: Independent Evaluation Department, European Bank for Reconstruction and Development
The mid-sized corporate support facility was a €250 million framework intended to provide a streamlined approval process for loans of up to €20 million to existing Bank clients experiencing difficulties obtaining short-term financing due to local banks being affected by the global financial crisis. The facility aimed to support fundamentally sound Bank clients, by financing primarily short-term working capital loans refinancing and the completion of capital investments, commenced by the clients before the crisis. By demonstrating the EBRD's support and confidence in its clients, the facility was also to act as a catalyst for attracting co-lenders and ensure the continued engagement of local commercial banks. The ultimate objective was for facility loans to be refinanced by commercial banks as soon as normal conditions returned to the credit markets.
The facility differed from the Bank's usual operations in that it provided working capital financing and refinancing which the Bank usually does not provide, at least on its own. Otherwise, the facility was essentially a mechanism designed to streamline the approval process which was of critical importance for this type of financing and under the given circumstances.
In the course of this evaluation EvD has also looked more broadly at the Bank's financing facilities and frameworks which represent some 50 per cent of all signed operations. Assessment of the Bank's entire facilities/frameworks portfolio is not the purpose of this evaluation but observations on the Bank's approach may help put it into better context and could also contribute to an ongoing discussion about such facilities between Bank Management and the FOPC.
