OREANDA-NEWS. On November 20, 2008 Closed joint stock company “LOCKO-Bank” and the European Bank for Reconstruction and Development (EBRD) signed a RUR500 million 5-year loan agreement for financing of Small and Medium-sized Businesses, reported the press-centre of LOCKO-Bank.
   
The proceeds will be used for further development of LOCKO-Bank’s SME lending program. Despite the ongoing financial crisis LOCKO-Bank continues implementation its strategic plan for the development of SME business in Moscow as well as in the regions. Today LOCKO-Bank has a total of 37 branches located primarily in the Central part of Russia.

This is the fifth project implemented by EBRD in cooperation with LOCKO-Bank. In October 2008 EBRD increased its Trade Facilitation Programme limit in favor of LOCKO-Bank by USD10 million to a new level of USD57.5 million. Among the Bank’s existing loans from the EBRD are a 4-year SME loan for USD10 million granted in 2006, a 5-year MSE loan for RUR340 million and a 7-year subordinated loan for USD20 million granted in 2007.

According to Mr. Mikhail Pavlov, Deputy Chairman of the Executive Board, “LOCKO-Bank truly values the EBRD’s continuous support as well as its decision to continue development of the relationship in the current unfavorable market conditions.

“The EBRD’s latest loan, made despite the ongoing financial crisis, shows the high level of trust such a reputable international financial institution as the EBRD has in LOCKO-Bank's successful business development,” Mr. Pavlov said.