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SME BANK’S PROGRAM FOR SMALL AND MEDIUM ENTERPRISES SUPPORT IN PRIORITY SECTORS OF RUSSIAN ECONOMY. Sergey P. Kryukov Chairman of the Board of the Russian Bank for Small and Medium Enterprises Support (SME BANK) April 2012 Istanbul, Turkey. SMEs in RUSSIA. CRITERIA. Number of employees.
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SME BANK’S PROGRAM FOR SMALL AND MEDIUM ENTERPRISES SUPPORT IN PRIORITY SECTORS OF RUSSIAN ECONOMY Sergey P. Kryukov Chairman of the Board of the Russian Bank for Small and Medium Enterprises Support (SME BANK) April 2012 Istanbul, Turkey
SMEsin RUSSIA CRITERIA Number of employees Sales revenues $ 33.6mln up to 250 SHARE OF SMEs IN GDP SME LENDING MARKET Investment projects SMEs loan structure is inappropriate to the goals
Founded in 1999 • 100% owned by Vnesheconombank • 42nd in Russia in terms of assets • Equity: USD 490mln • Assets: USD 3.2bln • Ratings: • S & P - BBB • Moody's - Baa2 SME Bank FINANCIAL AND MATERIAL SUPPORT INFORMATIONAL SUPPORT AND CONSULTING Non-Bank Institutions Commercial Banks 200 134 83 Russian Regions SMALL AND MEDIUM ENTERPRISES > 28600 SMEs
PROGRAM RESULTS Volume of support USD 5.88 bln All regions 774 cities there of USD4bln for top priority areas including 120 mono-profile cities (out of 335) Priority areas COMPARISON • innovations • modernization, • energy efficiency • social projects PROGRAM MARKET Tenors up to 7 years 2-3years Int. Rates 12.3 % 13-18% 4 4
Innovation Modernization Energy efficiency Non-trade sector PRIORITIES & FURTHER DEVELOPMENT OF THE PROGRAM Projects of social importance Industrial clusters 5
PARTNERS OF SME BANK – WIDE POTENTIAL • Leveraginggroup potential for SME support • Access toinvestmentprojects in Russiaand CIS Improvementof regional investmentclimate Access upto 30 thousand SMEs SME Bank Implementation ofbestpractices Influencingchangesofinstitutionaland legal environment in Russia
COOPERATION WITH DEVELOPMENT INSTITUTIONS Inter-governmentalcommittee EximBank of India • Brasil • BNDES • China • CDB • Canada • BDC • France • OSEO • Italy • Unibanca • USA • SBA • Export-import financing project under a credit line of EximBankof India • Loan for on-lending to modernization-related and innovative SMEs • Ongoing sharing of SME support experience • Common fund for SME financing (in cooperation with Vnesheconombank) • Capital Markets transactions (in discussion) • Technology for evaluation of energy efficiency– a calculatorwhich was implementedintocreditproceduresof SME Bank andrecommendedtootherlenders • IFC participation in design of SME Bank‘swebsite • Cooperationwith EBRD partners in Russiawhicharemost efficient and technologically equipped for business operations • Ongoing sharing of SME support experience
SME BANK INFORMATION PORTAL Created under support of IFC Map of regional support Accessibility of information about the Bank and the Program On-line advisory Credit products information Examples of support Over1 mln visits per year 9
SME BANK – A RELIABLE PARTNER FOR INTERNATIONAL INSTITUTIONS Advantages for Development Institutions • A reliable financial partner with over 8 years of experience in SME lending support • Availability of a wide partner network throughout Russia • Center ofcompetencefor SME lendingsupport in Russia Advantages for foreign SMEs • Affordable financing • Variety of financial instruments • Partners in Russiaandthe CIS (Ukraine, Belarus)
THANK YOU! Sadovnicheskaya ul., 79, Moscow, Russia Tel./fax +7 (495) 783-79-98, e-mail: info@mspbank.ru